On December 31, Year 4, the equity section of Spitz Co. was as follows: Common s
ID: 2370677 • Letter: O
Question
On December 31, Year 4, the equity section of Spitz Co. 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 = 146,000
Total equity = $352,000
On March 31, Year 5, Spitz declared a 10% stock dividend. Accordingly, 900 shares were issued when the fair value was $16 per share. For the 3 months ended March 31, Year 5, Spitz sustained a net loss of $32,000. The balance of Spitz's retained earnings as of March 31, Year 5, should be what? Please show how you calculate answer.
Explanation / Answer
Quiz only gives four choices A)99,600 B)105,000 C) 108,600 D) 114,000 Answer is (A) 146,000 - (900*16) - 32,000 = 99,600
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.