A Corporation Reported Net Income of $60,000, Declared and Paid

question 87

Multiple Choice

A corporation reported net income of $60,000, declared and paid cash dividends of $80,000, and issued 3,000 shares of $2 par common stock at $15 per share during the year. What total effects would these transactions have on the following stockholders' equity accounts? Retained Earnings Common Stock

• A)increase increase
• B)increase decrease
• C)decrease decrease
• D)decrease increase

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Definitions:

Investment

The action or process of investing money for profit or material result.

Altruism

The selfless concern for the well-being of others without expecting anything in return.

Hegel

A German philosopher known for his dialectical method and the concept of the Absolute Spirit, emphasizing the historical development of consciousness and reality.

Spirit

In Hegel, the all-embracing idea that includes the entire universe and all of humanity. More generally, spirit means enthusiasm (as in “team spirit” or “when the spirit moves me”); in religion, spirit usually refers to an intangible being, such as God or, sometimes, the human soul.