Question
Asked Jan 24, 2020
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Jackson Health Foods has 8,000 shares of $2 par common stock outstanding, which were issued at $15 per share. Jackson also has a deficit balance in Retained Earnings of $86,000. How much is Jackson’s total stockholders’ equity?

  • $16,000 
  • $120,000 
  • $206,000 
  • $34,000
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Expert Answer

Step 1

Owners’ equity: The claims of owners on a company’s resources, after the liabilities are paid off, are referred to as stockholders’ equity. Thus, stockholders’ equity is sometimes referred to as net worth of owners or shareholders or stockholders.

 

Step 2

Calculate total stockh...

Accounting homework question answer, step 2, image 1
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