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5 December, 21:42

Techstar, Inc. has 15,000 shares of $1 par common stock outstanding which it issued at $5 per share. Techstar, Inc. also has retained earnings of $100,000. How much is Techstar, Inc.'s total stockholders' equity?

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  1. 5 December, 22:52
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    Techstar, Inc.'s total stockholders' equity is $175,000

    Explanation:

    Total equity is the total value of all paid-in-capital balance and accumulated earning and any other reserves. Stocks are issued on a price which includes the price at par value and price over par value, both of these are recorded separately.

    Number of shares issued = 15,000 shares

    Issuance Price = $5

    Par value = $1

    Equity Section of Balance sheet

    Paid-In-Capital at par ($1 x 15000) $15,000

    Paid-In-Capital excess of par (($5-$1) x 15,000) $60,000

    Retained earning $100,000

    Total Stockholder's Equity $175,000
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Home » Business » Techstar, Inc. has 15,000 shares of $1 par common stock outstanding which it issued at $5 per share. Techstar, Inc. also has retained earnings of $100,000. How much is Techstar, Inc.'s total stockholders' equity?
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