Black Enterprises reported the following ($ in 000s) as of December 31, 2011. Al
ID: 2472496 • Letter: B
Question
Black Enterprises reported the following ($ in 000s) as of December 31, 2011. All accounts have
normal balances.
Deficit 3,000
Common stock 2,000
Paid-in capital-stock options 1,000
Treasury stock at cost 400
Paid-in capital-excess of par 30,000
During 2012 ($ in 000s), net income was $9,000; 25% of the treasury stock was resold for $450; cash
dividends declared were $600; cash dividends paid were $500; and all of the stock options expired. What
($ in 000s) was shareholders' equity as of December 31, 2012?
A. $37,450
B. $38,450
C. $38,350
D. $38,100
Explanation / Answer
Answer B. $38,450
Common stock
$2,000
Paid-in capital–excess of par
$30,000
Paid-in capital–stock options
$1,000
Retained earnings
($3,000)
Treasury stock
($400)
Sale of treasury stock
$450
Net income was
$9,000
Cash dividends paid were
($600)
Total shareholders’ equity
$38,450
Common stock
$2,000
Paid-in capital–excess of par
$30,000
Paid-in capital–stock options
$1,000
Retained earnings
($3,000)
Treasury stock
($400)
Sale of treasury stock
$450
Net income was
$9,000
Cash dividends paid were
($600)
Total shareholders’ equity
$38,450
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.