Retained Earnings Balance / Stock Split
Not what you're looking for?
The Rand Corporation began the current year with a retained earnings balance of $25,000. During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment. Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000. Compute the year end retained earnings balance
$29,000
$35,000
$39,000
$45,000
A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be ________.
160,000 shares
40,000 shares
120,000 shares
10,000 shares
Purchase this Solution
Solution Summary
The solution explains two questions relating to ending retained earnings balance and the number of shares outstanding after a stock split. It provides all the steps for computing the given problems.
Solution Preview
1. Opening retained earnings are 25,000. The error correction will reduce the retained earnings since an expense was not ...
Purchase this Solution
Free BrainMass Quizzes
Operations Management
This quiz tests a student's knowledge about Operations Management
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Introduction to Finance
This quiz test introductory finance topics.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce