A company has 3,750 shares of $1 par value common stock and 340 shares of 5%, $

Question:

A company has 3,750 shares of $1 and 340 shares of 5%, $ 130 par, noncumulative preferred stock outstanding. The balance in Retained Earnings at the beginning of the year was $ 775,000. Net income for the current year was $ 465,000. If the company paid a of $ 1 per share on its common stock, what is the balance in Retained Earnings at the end of the year?
A) $ 1,240,000
B) $ 1,245,960
C) $ 1,234,040
D) $ 769,040
E) $ 304,040
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...