Samuel's Has 7,000 Shares of Stock Outstanding with a Par

question 48

Multiple Choice

Samuel's has 7,000 shares of stock outstanding with a par value of $1.00 per share and a market value of $12 per share. The balance sheet shows $7,000 in the common stock account,$58,000 in the capital in excess of par account and $32,500 in the retained earnings account. The firm just announced a 50% (large) stock dividend. What is the value of the retained earnings account after the dividend?

• A) $29,000
• B) $30,500
• C) $32,500
• D) $34,500
• E) $36,000

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Definitions:

Electricity

A form of energy resulting from the existence of charged particles which can be statically held or dynamically flowing through conductors.

Coal

A combustible black or brownish-black sedimentary rock, formed as rock strata called coal seams, used as a fossil fuel for producing electricity and heat.

Global Coal Supplies

The total quantity of coal available for use worldwide, encompassing both proven reserves and resources yet to be discovered.

Depleted

A condition where a significant amount of a resource or substance has been consumed or removed, often leading to scarcity.