1. Company ABC recorded financial transactions, based on the accrual basis of accounting, for the month of July year 1, their second month of operations, as follows: On July 1, the LLC showed Cash of $10, Accounts Payable of $20, Common Stock of $30 and Retained Earnings of $40. On July 8, the LLC issued common stock in exchange for $50 cash from a stockholder. On July 11, the LLC borrowed $60 from a creditor and executed a note payable with the principal and interest to be due and paid in one year. On July 11, the LLC purchased $70 of equipment for cash. On July 13, the LLC rendered service to a client and received $80 in cash. On July 15, the LLC incurred a repair expense of $90 and promised to pay the repair contractor the following month. On July 28, the LLC rendered service to a new client in the amount of $100 on account, as the client promised to pay the following month. On July 31, the LLC declared and distributed cash dividends of $110.

What is ABC Company's Retained Earnings on July 31, Year 1 ?

2. Following is the stockholders equity section from Company ABC 's balance sheet as of Dec 31, Yr 1:

STOCKHOLDERS' EQUITY Common stock: $0.45 par value, authorized 600,000 shares; 175,000 shares issued: $78,750

Additional paid-in capital: $532,000

Retained earnings: $79,500 Treasury stock: 15,000 shares: ($180,000)

Total stockholders' equity $510,250

a) At the time the common stock was sold, what was the cost of each common stock sold?

b) Compute the average price at which ABC Company issued its common stock shares. c) Compute the number of common stock shares outstanding as of Dec 31, Yr 1.