LLA, Inc, was capitalized through the issuance of 10,000 shares of $30 par common stock that was sold at $50 per share. LLA had net income as follows: Year 1 $100,000 Year 2 200,000 If, during Year 2, LLA paid dividends to its shareholders at $25 per share, what armount was LLA's retained earnings balance and shareholders' equity balance at the end of Year 27 Retained earnings Shareholders' equity $50,000 $550,000 B. $50,000 $800,000 $300,000 $550,000 OD. $300,000 $800,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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LLA, Inc, was capitalized through the issuance of 10,000 shares of $30 par common stock that was sold at $50 per share. LLA
had net income as follows:
Year 1 $100,000
Year 2 200,000
If, during Year 2, LLA paid dividends to its shareholders at $25 per share, what armount was LLA's retained earnings balance and
shareholders' equity balance at the end of Year 27
Retained earnings
Shareholders' equity
$50,000
$550,000
B.
$50,000
$800,000
$300,000
$550,000
$300,000
$800,000
D.
Transcribed Image Text:LLA, Inc, was capitalized through the issuance of 10,000 shares of $30 par common stock that was sold at $50 per share. LLA had net income as follows: Year 1 $100,000 Year 2 200,000 If, during Year 2, LLA paid dividends to its shareholders at $25 per share, what armount was LLA's retained earnings balance and shareholders' equity balance at the end of Year 27 Retained earnings Shareholders' equity $50,000 $550,000 B. $50,000 $800,000 $300,000 $550,000 $300,000 $800,000 D.
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