Simple Solutions Company reported net earnings of $60,000,declared and paid cash dividends on its common stock in the amount of $40,000 during the year,and sold 3,000 shares of $2 par value common stock for $15 per share during the year.What effects would these transactions have on the stockholders' equity accounts shown below? Retained Earnings Common Stock

Question

Quizplus · Accepted Answer

The net earnings increase retained earnings by $60,000, and the sale of common stock increases common stock by the par value of the shares sold.

Simple Solutions Company Reported Net Earnings of $60,000,declared and Paid