Duke Corporation reports the following components of stockholders\' equity on De

Question

Duke Corporation reports the following components of stockholders' equity on December 31, 2013: Common stock —$27 par value, 110,000 shares authorized, 55,000 shares issued and outstanding $1,485,000 Paid-in capital in excess of par value, common stock 80,000 Retained earnings 480,000 Total stockholders' equity 2,045,000 In year 2014, the following transactions affected its stockholders' equity accounts: Jan. 1 Purchased 4,500 shares of its own stock at $29 cash per share. Jan. 5 Directors declared a $3 per share cash dividend payable on Feb. 28 to the Feb. 5 stockholders of record. Feb. 28 Paid the dividend declared on January 5. Mar. 3 Sold 1,200 shares of treasury stock for $30 per share May 25 Sold 1,200 shares of treasury stock for $17 per share June 15 Directors declared a $2.00 per share cash dividend payable on July 15 to the June 30 stockholders of record July 15 Paid the dividend declared on June 15 What is the amount in the Retained Earnings account immediately after the dividend on July 15?

Explanation / Answer

Balance of Retained earnings: Beginning Balance of Retained earnings 480000 Less: Dividend for Jan-5 (55000-4500) shares @3 151500 Less: Dividend for July 15 (55000-2100) shares @2 105800 Balance of Retained earnings after July15 dividend 222700

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