Ask Experts Questions for FREE Help!
 

Free Answers in 3 Easy Steps

Register Now
3 Steps
 


Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.
  Answer this Question    Ask about Accounting    Ask about another Subject  
 

srmdaman
Nov 15, 2008, 12:26 PM
Hello I was wondering how do I calculate capital stock?

Beginning of the year assets - liabilities
720,000-432,00=288,00
End of year assest-liabilities
894,000-390,000=504,000

504,000-288,000=216,000 is this the correct change in Owners equity

If dividends is 48,000
Revenue is 237,300
and expenses is 129,600

I need to know what is capital stock but I am struggling to find the correct answer. I know the answer is 156,300 but I do not know how to calculate.

Any help would greatly be appreciated

MLSNC
Nov 15, 2008, 12:46 PM
Revenues less expenses = net income = 107,700
Subtract dividends paid of 48,000 from the 107,700 gives you an increase in equity of 59,700. But as you have noted the equity changed 216,000. Therefore the difference would be capital stock issued during the year of 156,300. However, this is not the total capital stock as the beginning equity of 288,000 should have some amount of stock.