Chapter 15: Question 3BE (page 811)

Wilco Corporation has the following account balances at December 31, 2017.
Common stock, $5 par value $ 510,000
Treasury stock 90,000
Retained earnings 2,340,000
Paid-in capital in excess of par—common stock 1,320,000
Prepare Wilco’s December 31, 2017, stockholders’ equity section.

Short Answer

Expert verified

The total stockholders’ equity of Wilco on December 31, 2017, is $4,080,000.

Step by step solution

Meaning of Stockholders’ equity

In simple words, company net worth (or shareholders' equity) measures the amount of money that the owners of the company invested into the business.

Preparing Wilco’s Stockholders’ Equity.

WILCO CORPORATION Stockholders’ equity December 31, 2017
Common stock, $5 par value	$ 510,000
Paid-in capital in excess of par-common stock	1,320,000
Total paid-in capital	1,830,000
Retained earnings	2,340,000
	4,170,000
Less: Treasury stock	90,000
Total stockholders’ equity	4,080,000

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BRUNO CORPORATION POST-CLOSING TRIAL BALANCE DECEMBER 31, 2017
	Dr.	Cr.
Accounts payable		\( 310,000
Accounts receivable	\) 480,000
Accumulated depreciation—buildings		185,000
Additional paid-in capital in excess
of par—common		1,300,000
From treasury stock		160,000
Allowance for doubtful accounts		30,000
Bonds payable		300,000
Buildings	1,450,000
Cash	190,000
Common stock (\(1 par)		200,000
Dividends payable (preferred stock—cash)		4,000
Inventory	560,000
Land	400,000
Preferred stock (\)50 par)		500,000
Prepaid expenses	40,000
Retained earnings		301,000
Treasury stock (common at cost)	170,000
Totals	\(3,290,000	\)3,290,000

At December 31, 2017, Bruno had the following number of common and preferred shares.
	Common	Preferred
Authorized	600,000	60,000
Issued	200,000	10,000
Outstanding	190,000	10,000

Wilco Corporation has the following account balances at December 31, 2017.
Common stock, \(5 par value \) 510,000
Treasury stock 90,000
Retained earnings 2,340,000
Paid-in capital in excess of par—common stock 1,320,000
Prepare Wilco’s December 31, 2017, stockholders’ equity section.

Short Answer

Step by step solution

Meaning of Stockholders’ equity

Preparing Wilco’s Stockholders’ Equity.

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Wilco Corporation has the following account balances at December 31, 2017.Common stock, \(5 par value \) 510,000Treasury stock 90,000Retained earnings 2,340,000Paid-in capital in excess of par—common stock 1,320,000Prepare Wilco’s December 31, 2017, stockholders’ equity section.

Short Answer

Step by step solution

Meaning of Stockholders’ equity

Preparing Wilco’s Stockholders’ Equity.

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Financial Performance

Managers

Strategic Analysis

Business Case Studies

Change Management

Organizational Communication

Study anywhere. Anytime. Across all devices.

Wilco Corporation has the following account balances at December 31, 2017.
Common stock, \(5 par value \) 510,000
Treasury stock 90,000
Retained earnings 2,340,000
Paid-in capital in excess of par—common stock 1,320,000
Prepare Wilco’s December 31, 2017, stockholders’ equity section.