Ask Question
BusinessBusiness
18 July, 02:14

Wendell Company provided the following pertaining to its recent year of operation:• Common stock with a $10,000 par value was sold for $50,000 cash.• Cash dividends totaling $20,000 were declared, of which $15,000 were paid.• Net income was $70,000• A 5% stock dividend resulted in a common stock distribution, which had a $5,000 par value and a $23,000 market value.• Treasury stock costing $9,000 was sold for $7,000. How much did Wendell's retained earnings increase during the recent year of operation? A. $32,000B. $45,000C. $29,000D.$27,000

+4
Answers (1)
  1. 18 July, 02:40
    0
    Option (D) $27,000

    Explanation:

    Data provided in the question:

    Cash dividends declared = $20,000

    Dividends paid = $15,000

    Net income = $70,000

    Market value of the stock dividend = $23,000

    Treasury stock = $9,000

    Selling cost of the treasury stock = $7,000

    Now,

    Retained earnings increase during the recent year of operation will be

    = Net income - Cash dividends declared - Market value of the stock dividend

    = $70,000 - $20,000 - $23,000

    = $27,000

    Hence,

    Option (D) $27,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Wendell Company provided the following pertaining to its recent year of operation:• Common stock with a $10,000 par value was sold for ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Employers must send the form to the Internal Revenue Service (IRS) at the end of the year. This form reports an employee's annual wages and the amount of withheld taxes from the employee's salary.
Answers (1)
Does a 14 year old need a work permit to work at safeway
Answers (1)
Layoffs are predictable. true or false
Answers (1)
The cost per unit in the production of an MP3 player is $60. The manufacturer charges $90 per unit for orders of 100 or less. To encourage large orders, the manufacturer reduces the charge by $0.
Answers (1)
Which of these is not a common credit card fee A. late fee B annual membership fee C balance transfer fee D minimum payment fee
Answers (1)
New Questions in Business
Nash's Trading Post, LLC has assets of $4200000, common stock of $1000000, and retained earnings of $600000. What are the creditors' claims on their assets?
Answers (1)
artin wants to provide money in his will for an annual bequest to whichever of his living relatives is oldest. That bequest will provide $ 1 comma 000 in the first year, and will grow by 7 % per year, forever.
Answers (1)
Vertis Corporation is interested in cutting the amount of time between when a customer places an order and when the order is completed. Details for the first quarter of the year are provided here. Choose the correct answer from the options provided.
Answers (1)
A company purchased factory equipment on April 1, 2013 for $80,000. It is estimated that the equipment will have an $10,000 salvage value at the end of its 10-year useful life.
Answers (2)
What is sales account?
Answers (1)
Home » Business » Wendell Company provided the following pertaining to its recent year of operation:• Common stock with a $10,000 par value was sold for $50,000 cash.• Cash dividends totaling $20,000 were declared, of which $15,000 were paid.
Sign Up Forgot Password?