A Company Has 2,000 Shares of $1 Par Value Common

question 183

Multiple Choice

A company has 2,000 shares of $1 par value common stock and 200 shares of 5%,$110 par,noncumulative preferred stock outstanding.The balance in Retained Earnings at the beginning of the year was $500,000.Net income for the current year was $300,000.If the company paid a dividend of $2 per share on its common stock,what is the balance in Retained Earnings at the end of the year?

• A)$800,000
• B)$805,100
• C)$794,900
• D)$494,900
• E)$194,900

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Definitions:

Corporate Social Responsibility

A strategy in business that aims at fostering sustainable growth through providing advantages that are economic, social, and environmental to all involved parties.

Compensation

The payment and benefits that employees receive in exchange for their work, including salaries, wages, bonuses, and benefits.

Balanced Scorecard

A system for strategic planning and management that helps align organizational activities with its vision and strategy, enhances communication within and outside the organization, and tracks the organization's performance in relation to its strategic objectives.

Easily Manipulated

Refers to data or variables that can be quickly and often unethically altered or influenced.