Marble Corporation had the following balances in its stockholders\' equity accou
ID: 2526959 • Letter: M
Question
Marble Corporation had the following balances in its stockholders' equity accounts at December 31, 2012: Common Stock, $10 par, 50,000 shares authorized, 20,000 shares issued Contributed Capital in Excess of Par Value, Common Retained Earnings Total stockholders' equity $200,000 250,000 500,000 $950,000 The following transactions occurred during 2013: Sold and issued 3,000 shares of common stock for $22 per share. Declared a $0.50 per share dividend on common stock. Net income for the year was determined to be $75.000 February 3 May 10 December 31 Assuming that the dividend was eventually paid during the year, calculate the ending balance in the Retained Earnings account.Explanation / Answer
Retained Earning balance as on 31st December, 2012$,500,000
Add: Net Income$75,000
Less: Payment of Dividend (Note 1) ($12,500)
Ending Balance of Retained Earning$5,62,500
Note 1
Total Share22000
No. of shares sold & issued3000
Total no. of Shares25000
Dividend per share0.50
Total Dividend paid$12,500