Question
On December 31, 2017, the stockholders' equity section of Arndt, Inc., was as follows: Common stock, par value $10; authorized 30,000 shares; issued and outstanding
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On December 31, 2017, the stockholders' equity section of Arndt, Inc., was as follows:
Common stock, par value $10; authorized 30,000 shares;
issued and outstanding 9,000 shares $ 90,000
Additional paid-in capital 116,000
Retained earnings 194,000
Total stockholders' equity $400,000
On March 31, 2018, Arndt declared a 15% stock dividend, and accordingly 1,350 additional shares were issued, when the fair value of the stock was $20 per share. For the three months ended March 31, 2018, Arndt recorded a net income of $40,000. The balance of Arndts retained earnings as of March 31, 2018, should be
a. $127,000.
b. $194,000.
c. $154,800.
d. $207,000.
On December 31, 2017, the stockholders' equity section of Arndt, Inc., was as follows:
Common stock, par value $10; authorized 30,000 shares;
issued and outstanding 9,000 shares $ 90,000
Additional paid-in capital 116,000
Retained earnings 194,000
Total stockholders' equity $400,000
On March 31, 2018, Arndt declared a 15% stock dividend, and accordingly 1,350 additional shares were issued, when the fair value of the stock was $20 per share. For the three months ended March 31, 2018, Arndt recorded a net income of $40,000. The balance of Arndts retained earnings as of March 31, 2018, should be
| a. | $127,000. | |
| b. | $194,000. | |
| c. | $154,800. | |
| d. | $207,000. |
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
