Question
The following was extracted from the equity section of the balance sheet of Ear Muffs Corporation. 12/31/2019 12/31/2020 Common Stock ($2 par value) $100,000 $120,000
- The following was extracted from the equity section of the balance sheet of Ear Muffs Corporation.
|
| 12/31/2019 | 12/31/2020 |
| Common Stock ($2 par value) | $100,000 | $120,000 |
| Paid in capital in excess of par | 20,000 | 70,000 |
| Retained earnings | 90,000 | 145,000 |
During 2020, Ear Muffs Corp. declared and issued a small stock dividend. There were no other changes in stock issued and outstanding during 2020. Net income for 2020 was
- $105,000
- $55,000
- $125,000
- $70,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Intermediate Accounting
Authors: Loren A. Nikolai, John D. Bazley, Jefferson P. Jones
11th edition
978-0538467087, 9781111781262, 538467088, 1111781265, 978-0324659139
