Question
Use the incomplete stockholders' equity section of Vargas Companys balance sheet as of December 31, 2015, to answer the following question. Common stock, $7 par,
Use the incomplete stockholders' equity section of Vargas Companys balance sheet as of December 31, 2015, to answer the following question.
| Common stock, $7 par, 100,000 shares authorized | $700,000 |
| Additional paid in capitalcommon | 160,000 |
| Retained earnings | ? |
| Treasury stock (2,000 shares at cost) | (16,000) |
| Total stockholders' equity | 974,000 |
| What is the amount of Vargas retained earnings?
|
|
| A. | $130,000 | |
| B. | $98,000 | |
| C. | $860,000 | |
| D. | $114,000 |
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Contemporary Auditing Real Issues And Cases
Authors: Michael C. Knapp, Loreen Knapp
5th Edition
032418834X, 978-0324188349
