Use the Incomplete Stockholders' Equity Section of Wilmerding Company's Balance

question 60

Multiple Choice

Use the incomplete stockholders' equity section of Wilmerding Company's balance sheet as of December 31, 2016, to answer the following question. $\begin{array}{lr}\text { Common stock, } \$ 7 \text { par, } 100,000 \text { shares authorized } & \$ 700,000 \\\text { Additional paid-in capital-common } & 160,000 \\\text { Retained earnings } & ? \\\text { Treasury stock }(2,000 \text { shares at cost) } & (16,000) \\\text { Total stockholders' equity } & 974,000\end{array}$ ? What is the amount of Wilmerding's retained earnings?

• A) $130,000
• B) $98,000
• C) $860,000
• D) $114,000

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Definitions:

End-of-period Spreadsheet

A tool used in accounting to compile all financial information before closing the books at the end of a reporting period.

Spreadsheet Heading

The title section at the top of a spreadsheet document that typically contains the name of the spreadsheet, columns, rows, or specific data identifiers.

Adjusted Trial Balance

A statement showing all balances of ledger accounts after adjustments, used to prepare financial statements.

Adjustments Column

A column in journals or ledgers where adjustments are made to correct or update account balances before the preparation of financial statements.