The Kansas Company was started when it issued 200 shares of $5 par value common stock at a market price of $20 per share. The company repurchased 10 shares at a market price of $15 per share. Later the company reissued 5 shares at a market price of $20 per share. At the end of the first year of operations the company’s equity included $1,200 of retained earnings in addition to its contributed capital.  The total amount of stockholders’ equity at the end of the first year would be 

To determine the total stockholders' equity at the end of the first year for the Kansas Company, we need to break down the components of equity:

1. **Contributed Capital**: This includes the common stock issued and any additional paid-in capital.

   - **Common Stock**: The company issued 200 shares of $5 par value common stock.
     \[
     \text{Common Stock} = 200 \text{ shares} \times \$5 = \$1,000
     \]

   - **Additional Paid-In Capital**: This is the amount received above the par value when the stock was issued.
     \[
     \text{Additional Paid-In Capital} = (\text{Market Price} - \text{Par Value}) \times \text{Number of Shares Issued} = (\$20 - \$5) \times 200 = \$3,000
     \]

   - **Total Contributed Capital**: 
     \[
     \text{Total Contributed Capital} = \text{Common Stock} + \text{Additional Paid-In Capital} = \$1,000 + \$3,000 = \$4,000
     \]

2. **Treasury Stock**: This is the stock repurchased by the company. The company repurchased 10 shares at $15 per share.
   \[
   \text{Treasury Stock} = 10 \text{ shares} \times \$15 = \$150
   \]

3. **Retained Earnings**: At the end of the first year, the retained earnings amount to $1,200.

Now, we can calculate the total stockholders' equity:

\[
\text{Total Stockholders' Equity} = \text{Total Contributed Capital} - \text{Treasury Stock} + \text{Retained Earnings}
\]

Substituting the values we calculated:

\[
\text{Total Stockholders' Equity} = \$4,000 - \$150 + \$1,200 = \$5,050
\]

Thus, the total amount of stockholders' equity at the end of the first year is **$5,050**.

Would you like further details or have any questions? Here are some related questions you might consider:

1. How does treasury stock affect the total equity of a company?
2. What are the implications of issuing stock at a price above par value?
3. How is retained earnings affected by the company's operations?
4. What is the difference between common stock and preferred stock?
5. How does the buyback of shares influence a company's financial statements?

**Tip**: Always consider both the par value and market price when assessing the impact of stock transactions on equity.

The Kansas Company was started when it issued 200 shares of $5 par value common stock at a market price of $20 per share. The company repurchased 10 shares at a market price of $15 per share. Later the company reissued 5 shares at a market price of $20 per share. At the end of the first year of operations the company’s equity included $1,200 of retained earnings in addition to its contributed capital. The total amount of stockholders’ equity at the end of the first year would be.

Explore the calculation of stockholders' equity for the Kansas Company, including the effects of issuing common stock, treasury stock transactions, and retained earnings. Discover how the company achieved total equity of $5,050 after its first year of operations.

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