Warner Corporation
Not what you're looking for?
As of December 31, 2006, Warner Corporation reported the following:
Dividends payable 20,000
Treasury Stock 600,000
Paid-in capital-share repurchase 20,000
Other paid-in capital accounts 4,000,000
Retained earnings 3,000,000
During 2007, half of the treasury stock was resold for $240,000; net income was $600,000; cash dividends declared were $1,500,000; and stock dividends declared were $500,000.
1. What was shareholders' equity as of December 31, 2006?
A. $7,020,000.
B. $6,440,000.
C. $6,420,000.
D. $6,400,000.
2. The 2007 sale of half of the treasury stock would:
A. Reduce income before tax by $60,000.
B. Reduce retained earnings by $60,000.
C. Increase total shareholders' equity by $300,000.
D. Decrease retained earnings by $40,000.
3. What would shareholders' equity be as of December 31, 2007?
A. Amount is not shown.
B. $5,760,000.
C. $5,820,000.
D. $6,760,000.
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer what was shareholders' equity as of December 31, 2006.
Solution Preview
As of December 31, 2006, Warner Corporation reported the following:
Dividends payable 20,000
Treasury Stock 600,000
Paid-in capital-share repurchase 20,000
Other paid-in capital accounts 4,000,000
Retained earnings 3,000,000
During 2007, half of the treasury stock was resold for $240,000; net income was $600,000; cash dividends declared were ...
Purchase this Solution
Free BrainMass Quizzes
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Introduction to Finance
This quiz test introductory finance topics.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.