Company E reports the following stockholders' equity: Common Stock, 100,000 authorized, 30,000 issued, $3 par ? Paid-In Common Stock 93,000 Less: Treasury Stock, 5000 shares (15,000) Retained Earnings 40,000 Assume that Company E pays a $1 per share dividend to its common shareholders. What would be the ending balance in Retained Earnings after the dividend was paid?
Company E reports the following stockholders' equity: Common Stock, 100,000 authorized, 30,000 issued, $3 par ? Paid-In Common Stock 93,000 Less: Treasury Stock, 5000 shares (15,000) Retained Earnings 40,000 Assume that Company E pays a $1 per share dividend to its common shareholders. What would be the ending balance in Retained Earnings after the dividend was paid?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 79E: Ratio Analysis MJO Inc. has the following stockholders equity section of the balance sheet: On the...
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Question
Company E reports the following
Common Stock, 100,000 authorized, 30,000 issued, $3 par |
? |
Paid-In Common Stock |
93,000 |
Less: |
(15,000) |
|
40,000 |
Assume that Company E pays a $1 per share dividend to its common shareholders. What would be the ending balance in Retained Earnings after the dividend was paid?
Expert Solution
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Retained Earnings:
Retained earnings is the amount retained by the company after their net earnings for a particular period.
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