1) Which of the following accounts is recorded as part of stockholders’ equity o
ID: 2575010 • Letter: 1
Question
1) Which of the following accounts is recorded as part of stockholders’ equity on the Balance Sheet?
2) For 2014, CAP Corporation reported net income of $96,000; net sales $1,440,000; and weighted average shares outstanding of 9,600. There were no preferred dividends. What was the 2014 earnings per share? $100.00 $150.00 $10.00 $15.00
(TCO A) XYZ Company recorded the following events involving a recent merchandise purchase.
- Received goods for $50,000, terms 2/10, n/30.
- Returned $1,000 of the shipment for credit due to damaged goods.
- Paid $1,500 for freight-in.
- Paid the invoice within the discount period.
7) As a result of these events, the company's merchandise inventory
Explanation / Answer
1 Retained earnings is recorded as part of stockholders’ equity on the Balance Sheet 2 Earnings per share = 96000/9600 = 10 3 Increase in company's merchandise inventory = (50000-1000+1500)-(49000*0.02)= 49520
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