👤

​Moretown, Inc. had the following transactions in​ 2017, its first year of​ operations:

1. Issued 35,000 shares of common stock. Stock has par value of $1.00 per share and was issued at $23.00per share.
2. Earned net income of $75,000.
3. Paid no dividends.
At the end of​ 2017, what is total​ stockholders' equity?
A. $880,000
B. $35,000
C. $805,000
D. $ 75,000

Answer :

​Moretown, Inc. had the following transactions in​ 2017, its first year of​ operations at the end of 2017 $880,000 would be the total stockholder's equity.

Total Stock holder's equity = (35,000*$23) + $75,000

Total Stock holder's equity = $805,000 + $75,000 = $880,000

Equity held by stockholders refers to the sum that a company's founders have contributed to the enterprise. This includes both the money they have directly invested and all of the earnings the company has made and reinvested since it was founded.

Equity is distinct from shareholders' equity. While the term "equity" usually refers to a public company's ownership, "shareholders' equity" refers to the difference between a company's total assets and total liabilities as shown on its balance sheet.

To learn more about stockholder's equity

https://brainly.com/question/13278063

#SPJ4