Question

On november 1, current year, rockcreek corporation invested 60,000 in a new delivery truck. the truck is being depreciated at a monthly rate of $900. during the current year, the company issued stock for $96,000 and declared dividends of $12,000. its net income in current year was $108,000. rock creek ending retained earnings balance as reported in its december 31, current year, balance sheet was $120,000. its beginning capital stock balance on january 1, current year, was $180,000.determine the total stockholders' equity reported in the company's balance sheet dated december 31, current year.

Answer 1

The total stockholders' equity reported in the company's balance sheet dated December 31, current year, is $396,000.

Step-by-step explanation:

To determine the total stockholders' equity reported in the company's balance sheet dated December 31, current year, we need to take into account the changes in capital stock, net income, dividends, and the beginning and ending balance of retained earnings.

The formula to calculate the total stockholders' equity is: Beginning Capital Stock + Net Income - Dividends + Ending Retained Earnings.

In this case, the beginning capital stock is $180,000, the net income is $108,000, the dividends are $12,000, and the ending retained earnings balance is $120,000. So, the total stockholders' equity is $180,000 + $108,000 - $12,000 + $120,000 = $396,000.

Answer 2

the answer would be the stockholders w=equity minus