Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help to solve question number 20 and 21 On December 31, 2017, the stockholders' equity section of Arndt, Inc., was as follows: On

image text in transcribed

I need help to solve question number 20 and 21

On December 31, 2017, the stockholders' equity section of Arndt, Inc., was as follows: On March 31, 2018, Arndt declared a 10% stock dividend, and accordingly 900 additional shares were issued, when the fair value of the stock was $18 per share. For the three months ended March 31, 2018, Arndt sustained a net loss of $40,000. The balance of Arndt's retained earnings as of March 31, 2018, should be a. $127800. b. $135,000. C. $136, 800. d. $144,000. Farmer Corp. owned20,000 shares of Eaton Corp. purchased in 2014 for $550,000. On December 15, 2017, Farmer declared a property dividend of all of its Eaton Corp. shares on the basis of one share of Eaton for every 10 shares of Farmer common stock held by its stockholders. The property dividend was distributed on January 15, 2018. On the declaration date, the aggregate market price of the Eaton shares held by Farmer was $900,000. The entry to record the declaration of the dividend would include a debit to Retained Earnings of a $0. b. $350,000. c. $550,000. d. $900,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Selected Chapters For The University Of Oklahoma

Authors: Unknown Author

12th Edition

0077218256, 978-0077218256

More Books

Students also viewed these Accounting questions