Chapter 13, Problem 2QC

To determine

Retained Earnings:

A part of the income that is retained by the company instead of paying it as dividends and used for the purpose of re-investment is known as retained earnings.

Paid In Capital

When the shares are issued to raise the fund by common and preferred stock, the amount invested by the investors is known as Paid in capital.

To determine:

The basic two sources of stockholders equity.