Yellow Enterprises reported the following ($ in thousands) as ofDecember 31, 2021. All accounts...

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Accounting

Yellow Enterprises reported the following ($ in thousands) as ofDecember 31, 2021. All accounts have normal balances.
Deficit (debit balance in retained earnings) $ 3,000
Common stock 2,000
Paid-in capital—share repurchase 1,000
Treasury stock (at cost) 400
Paid-in capital—excess of par 30,000

During 2022 ($ in thousands), net income was $9,000; 25% of thetreasury stock was resold for $450; cash dividends declared were$600; cash dividends paid were $500.

What ($ in thousands) was shareholders' equity as of December 31,2022?
Multiple Choice
$38,100.
$37,450.
$38,450.
$38,350.

Answer & Explanation Solved by verified expert

3.9 Ratings (718 Votes)

Answer: $38,450

Explanation

Shareholders’ equity as of December 31, 2021

	$
Common stock	2,000.00
Paid-in capital–excess of par	30,000.00
Paid-in capital—share repurchase	1,000.00
Retained earnings	(3,000.00)
Treasury stock	(400.00)
Total shareholders’ equity on December 31, 2021	29,600.00


Shareholders’ equity as of December 31, 2022

	$
Shareholders’ equity on December 31, 2021	29,600.00
Net income	9,000.00
Sale of treasury stock	450.00
Dividends declared	(600.00)
Total shareholders’ equity on December 31, 2022	38,450.00

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In: AccountingYellow Enterprises reported the following ($ in thousands) as ofDecember 31, 2021. All accounts have...Yellow Enterprises reported the following ($ in thousands) as ofDecember 31, 2021. All accounts have normal balances.Deficit (debit balance in retained earnings)$3,000Common stock2,000Paid-in capital—share repurchase1,000Treasury stock (at cost)400Paid-in capital—excess of par30,000During 2022 ($ in thousands), net income was $9,000; 25% of thetreasury stock was resold for $450; cash dividends declared were$600; cash dividends paid were $500.What ($ in thousands) was shareholders' equity as of December 31,2022?Multiple Choice$38,100.$37,450.$38,450.$38,350.


Deficit (debit balance in retained earnings)	$	3,000
Common stock		2,000
Paid-in capital—share repurchase		1,000
Treasury stock (at cost)		400
Paid-in capital—excess of par		30,000