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

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

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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