A Corporation Had the Following Account Balances on Its December

question 122

Multiple Choice

A corporation had the following account balances on its December 31,year 1,and post-closing trial balance: $\begin{array}{|l|r|}\hline \text { Common shares......................... } & \$ 1,000 \\\hline \text { Preferred shares.................. } & 760 \\\hline \text { Appropriated for future plant expansion..... } & 200 \\\hline \text { Unappropriated retained earnings............ } & 100 \\\hline \text { Bond sinking fund................ } & 80\\\hline\end{array}$ Additional information: During the year a $50 cash dividend on preferred shares and a $50 cash dividend on common shares were declared.At December 31,year 1,total stockholders' equity is:

• A)$2,140
• B)$2,060
• C)$2,040
• D)$1,940

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