On December 31, 2010, the stockholders\' equity section of Arndt, Inc., was as f
ID: 2381318 • Letter: O
Question
On December 31, 2010, the stockholders' equity section of Arndt, Inc., was as follows:
Common stock, par value $10; authorized 30,000 shares;
issued and outstanding 9,000 shares $ 90,000
Additional paid-in capital 116,000
Retained earnings 174,000
Total stockholders' equity $380,000
On March 31, 2011, Arndt declared a 10% stock dividend, and accordingly 900 additional shares were issued, when the fair market value of the stock was $18 per share. For the three months ended March 31, 2011, Arndt sustained a net loss of $32,000.
Required:
The balance of Arndt
Explanation / Answer
Stock Dividend = 900*18 = 16200
retained earnings= 174,000 - $32,000 -16,200
=125,800
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