P12-2A The following account balances relate to the stockholders' equity accounts of Molder Corp. at year-end. Common stock, 10,500 and 10,000 shares, respectively, for 2017 and 2016 Preferred stock, 5,000 shares Retained earnings 2017 $160,800 125,000 300,000 2016 $140,000 125,000 270,000 A small stock dividend was declared and issued in 2017. The market price of the shares was $8,800. Cash dividends were $20,000 in both 2017 and 2016. The common stock has no par or stated value. Instructions (a) What was the amount of net income reported by Molder Corn, in 2017?
P12-2A The following account balances relate to the stockholders' equity accounts of Molder Corp. at year-end. Common stock, 10,500 and 10,000 shares, respectively, for 2017 and 2016 Preferred stock, 5,000 shares Retained earnings 2017 $160,800 125,000 300,000 2016 $140,000 125,000 270,000 A small stock dividend was declared and issued in 2017. The market price of the shares was $8,800. Cash dividends were $20,000 in both 2017 and 2016. The common stock has no par or stated value. Instructions (a) What was the amount of net income reported by Molder Corn, in 2017?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter11: Stockholders' Equity
Section: Chapter Questions
Problem 11.13E
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Question
![P12-2A The following account balances relate to the stockholders' equity accounts of
Molder Corp. at year-end.
Common stock, 10,500 and 10,000 shares,
respectively, for 2017 and 2016
Preferred stock, 5,000 shares
Retained earnings
2017
$160,800
125,000
300,000
2016
$140,000
125,000
270,000
A small stock dividend was declared and issued in 2017. The market price of the shares
was $8,800. Cash dividends were $20,000 in both 2017 and 2016. The common stock has
no par or stated value.
Instructions
(a) What was the amount of net income reported by Molder Corp. in 2017?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F80e6acb4-0a8b-4d08-adab-edbacf11a399%2F14e4105d-f6de-4e9a-9edf-b3eb7871c899%2Fl37ip8q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:P12-2A The following account balances relate to the stockholders' equity accounts of
Molder Corp. at year-end.
Common stock, 10,500 and 10,000 shares,
respectively, for 2017 and 2016
Preferred stock, 5,000 shares
Retained earnings
2017
$160,800
125,000
300,000
2016
$140,000
125,000
270,000
A small stock dividend was declared and issued in 2017. The market price of the shares
was $8,800. Cash dividends were $20,000 in both 2017 and 2016. The common stock has
no par or stated value.
Instructions
(a) What was the amount of net income reported by Molder Corp. in 2017?
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