16. The stockholders' equity section of XYZ Corporation as of December 31, 2017, was as follows: Common stock, par value $2, authorized 20,000 shares; issued and outstanding 10,000 shares Paid-in capital in excess of par Retained earnings $ 20,000 30,000 85,000 $135,000 On March 1, 2018, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. On March 1, 2018, the fair value of the stock was $6 per share. For the two months ended February 28, 2018, XYZ sustained a net loss of $15,000. What amount should XYZ report as retained earnings as of March 1, 2018?

16. The stockholders' equity section of XYZ Corporation as of December 31, 2017, was as follows: Common stock, par value $2, authorized 20,000 shares; issued and outstanding 10,000 shares Paid-in capital in excess of par Retained earnings $ 20,000 30,000 85,000 $135,000 On March 1, 2018, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. On March 1, 2018, the fair value of the stock was $6 per share. For the two months ended February 28, 2018, XYZ sustained a net loss of $15,000. What amount should XYZ report as retained earnings as of March 1, 2018?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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