On December 31,2017,Aire Dyne,Inc

question 74

Essay

On December 31,2017,Aire Dyne,Inc.reported common stock of $120,000,retained earnings of $60,000,and total stockholders' equity equal to $500,000.No unusual accounts appeared in the Stockholders' Equity section of its balance sheet.During the fiscal year ended December 31,2018,10,000 shares of stock were sold for $40,000,of which $10,000 represented additional paid-in capital.The company reported net income of $85,000 and declared and paid dividends of $50,000.
A) What is the par value of the stock?

B) What is the amount of the retained earnings at December 31,2018 ?

C) Prepare a statement of retained earnings for Aire Dyne, Inc. for the year ended December 31,2018, in good form.

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Definitions:

Population Cycles

Oscillations in the size of a biological population as a result of changes in predation, resources, and other factors.

Survival Strategies

Techniques, behaviors, or adaptations that organisms use to survive and reproduce in their environments.

Typical Fish

Refers to common or representative fish species found in a given aquatic environment.