Asked Jan 24, 2020

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

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

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in



Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: Smitty’s Home Repair Company, a regional hardware chain that specializes in do-it-yourself materials...

A: Merger: A merger is the mix of two organizations into one by either shutting the old entities into o...


Q: Pittsburgh Aluminum Company uses a process cost system to record the costs of manufacturing rolled a...

A: 1. 


Q: The par value of shares historically indicated the real value of shares and all shares were issued a...

A: Common stock: Common stock is the instrument used by the company for raising funds from the general ...


Q: Journalizing issuance of stock—stated value Nelson Corporation issued 5,000 shares of $3 stated valu...

A: The stock in which shareholders are entitled to received dividend whose amount may vary from time to...


Q: In 2015, S began selling S Company gift cards. During 2015, S sold $4,600,000 of these gift cards. D...

A: A journal entry is prepared by the company to record the non-economic & economic transactions of...


Q: You are the new controller for Engineered Solutions. The company treasurer, Randy Patey, believes th...

A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and bus...


Q: In a Type A lease, “front loading” of lease expense and lease revenue occurs. What does this mean, a...

A: Lease:An agreement of contract that is made to transfer the right to utlize the resources for a spec...


Q: If pension expense recognized in a period exceeds thecurrent amount funded by the employer, what kin...

A: Pension: A fixed sum of money, receivable in future or after the age of retirement, which the benefi...


Q: The shareholders’ equity section of the balance sheet of TNL Systems Inc. included the following acc...

A: a.