Hearty Foods, Inc., is authorized to issue 5,000,000 shares of $2.00 par common stock . In its initial public offering
During the 5 years 2010 to 2015, Hearty earned net income of $1,150,000 and declared and paid cash dividends of $700,000. Stock dividends of $600,480 were distributed to the stockholders in 2011, with $150,120 credited to common stock and $450,360 credited to additional paid-in capital. At December 31, 2015, total assets of the company are $14,200,000, and liabilities add up to $7,833,250.
1. Show the computation of Hearty’s total stockholders equity at December 31, 2015. Present a detailed computation of each element of stockholders equity. Use the end-of-chapter summary problem on pages 566 and 567 to format your answer.
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
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Question Posted: December 10, 2012 04:39:39