Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

As of the beginning of 2013 a company had total contributed capital of $390,000

ID: 2427309 • Letter: A

Question

As of the beginning of 2013 a company had total contributed capital of $390,000 and total retained earnings of $44,000. Total liabilities were $190,000. During the year 2013, the company had the following transactions:

  

What is the amount of contributed capital that will be reported on the Statement of stockholders' equity at the end of 2013?

$459,000

$536,000

$390,000

$451,000

Which is the amount of retained earnings that will be reported on the Statement of stockholders' equity at the end of 2013?

$94,500

$74,500

$93,000

$44,000

The debt-to-assets ratio at the beginning of 2013 was closest to:

0.30

0.35

0.49

0.24

As of the beginning of 2013 a company had total contributed capital of $390,000 and total retained earnings of $44,000. Total liabilities were $190,000. During the year 2013, the company had the following transactions:

Explanation / Answer

The amount of contributed capital to be reported is 390,000 + 69,000 = $ 459,000

The amount of retained earnings to be reported = 44,000 + (169,000 -94,500-24,000) = $ 94,500

The debt-to-assets ratio at the beginning of 2013 was closest to 190,000 / ( 190,000+390,000+44,000) = 0.30