Basic Solutions Company Reported Net Earnings of $60,000, Declared and Paid

question 139

Short Answer

Basic Solutions Company reported net earnings of $60,000, declared and paid cash dividends on its common stock in the amount of $40,000 during the year, and sold 3,000 shares of $2 par value common stock for $15 per share during the year.What effects would these transactions have on the stockholders' equity accounts shown below? ​ $\begin{array}{ll}&\text { Retained Earnings}&\text {Common Stock }\\a.&\text { increase } & \text { increase } \\b.&\text { increase } & \text { decrease } \\c.&\text { decrease } & \text { increase } \\d.&\text { decrease } & \text { decrease }\end{array}$

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Definitions:

Outbound Transportation Costs

Expenses associated with moving goods from the manufacturer or seller to their final destination, including shipping, freight, and handling fees.

X-y Grid

A coordinate system for graphical display where each point is defined by a pair of numbers representing horizontal (x) and vertical (y) positions.

Minimum Cost Solution

An approach or method that achieves the desired outcome at the lowest possible expense.

Plant Assignments

The allocation of production tasks or operations to specific manufacturing plants or facilities based on factors like capacity, specialization, and location.