David's Building Equipment (DBE) Had Net Income of $200,000 for the Year

question 8

Multiple Choice

David's Building Equipment (DBE) had net income of $200,000 for the year ending 2008.The company decided to payout 30% of earnings per share as a dividend.DBE has 50,000 shares issued and outstanding.What are the retained earnings for 2008?

• A)$60,000
• B)$140,000
• C)$150,000
• D)$200,000
• E)None of the above.

Interpret financial statement data to calculate changes in earnings per share.

Understand the components and structure of the stockholders' equity section of the balance sheet.

Demonstrate how to journalize equity transactions including stock issuance and treasury stock transactions.

Calculate the key equity metrics such as paid-in capital in excess of par, treasury stock transactions, and retained earnings.

---

Definitions:

Observational Learning

Observational learning refers to the process of acquiring behaviors, skills, or attitudes by watching and imitating others.

Mental Picture

An image or representation formed in the mind of something not currently being sensed.

Future Time

The concept or perception of time that lies ahead, including plans, expectations, and the anticipation of events that have not yet occurred.

Modeled Behavior

Actions or responses learned through observing and replicating the behavior of others.