[srmdaman]

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]

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.

[Vizio]

125,000 shares of $5 par value capital stock for cash price of $7 per share. Company earns $110,000 and declared a dividend of $75,000. What is the balance of the capital stock account?