Notebook Company Had the Following Transactions in 2013,its First Year $\$ 50.00$

question 119

Multiple Choice

Notebook Company had the following transactions in 2013,its first year of operations. - Issued 2,000 common shares. Shares were issued at $\$ 50.00$ per share.
- Issued 100 preferred shares. Share were issued at $\$ 100$ per share.
- Earned net income of $\$95,000$ .
-Paid dividends of $\$ 5,000$ . At the end of 2013,how much was the total Shareholders' equity?

• A) $200,000
• B) $110,000
• C) $90,000
• D) $100,000

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Definitions:

Investor Ownership

A form of ownership where investors own shares or stakes in a company, giving them certain rights and potentially a share in the profit.

Commission

Commission refers to a fee paid for services or a percentage of sales earned by sales employees or agents on the transactions they facilitate.

Cash Dividends

A form of profit distribution by a corporation to its shareholders, paid in cash from the company's current or retained earnings.

Trading Securities

Financial assets that are purchased by an entity not for long-term investment but rather with the intention to sell them in the near term to make a profit.