Comanic Corp

question 185

Multiple Choice

Comanic Corp. has common stock of $5400000 retained earnings of $2000000 unrealized gains on trading securities of $100000 and unrealized losses on available-for-sale securities of $200000. What is the total amount of its stockholders' equity?

• A) $7200000
• B) $7400000
• C) $7300000
• D) $7500000

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Definitions:

Reversing Entries

Journal entries made at the beginning of an accounting period to reverse or cancel out adjusting entries made at the end of the previous period.

Premium on Bonds Payable

Premium on Bonds Payable refers to the amount by which the bond's selling price exceeds its face value or par value.

Interest Expense

The cost incurred by an entity for borrowed funds over a period, represented as an expense on the income statement.

Bonds Before Maturity

The buying or selling of bonds in the financial markets before they have reached their specified maturity date.