18) What is retained earnings. How is it calculated?
19) DM Company had beginning retained earnings of $80,000. During the year the company earned net income of $200,000 and declared dividends of $70,000. The Company sold 1,000 shares of stock for $45 each during the year. What is the ending balance in retained earnings?
20) Three Brothers Fitness Center had beginning retained earnings of $170,000. During the year the company had net income of $50,000 and declared dividends of $66,000. The Company issued 500 shares of stock for $15 each during the year and repurchased 100 shares of treasury stock for $11 per share. Calculate the ending balance in retained earnings.
21) Aqua, Inc. had the following shareholders’ equity section on its December 31, 2011 balance sheet:
12/31/11
Preferred stock, $100 par, 6%, noncumulative
$ 50,000
Common stock, $1 par value
400,000
Additional paid-in capital, common stock
1,200,000
Retained earnings
600,000
Total shareholders’ equity
$2,250,000
a.
How many shares of common stock have been issued?
shares
b.
What was the average selling price of a share of common stock?
$
c.
How many shares of preferred stock have been issued?
d.
If you holdONE SHAREof the preferred stock, how much of a dividend would you expect for the year?
e.
Beginning retained earnings is $500,000 and net income is $180,000. What is theTOTALdividend that the common shareholders received all together?
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