The stockholders' equity section of Dolphin Corporation as of December 31, 2011, contained the following accounts:

Dolphin's board of directors declared a 10 percent stock dividend on April 1, 2012, when the market value of the stock was $7 per share. Accordingly, 1,000 new shares were issued. All of Dolphin's stock has a par value of $3 per share. Assuming Dolphin sustained a net loss of $12,000 for the quarter ended March 31, 2012, what amount should Dolphin report as retained earnings as of April 1, 2012?

Question

The stockholders' equity section of Dolphin Corporation as of December 31, 2011, contained the following accounts:

Dolphin's board of directors declared a 10 percent stock dividend on April 1, 2012, when the market value of the stock was $7 per share. Accordingly, 1,000 new shares were issued. All of Dolphin's stock has a par value of $3 per share. Assuming Dolphin sustained a net loss of $12,000 for the quarter ended March 31, 2012, what amount should Dolphin report as retained earnings as of April 1, 2012?

Quizplus · Accepted Answer

The Answer of The stockholders' equity section of Dolphin Corporation as of December 31, 2011, contained the following accounts:

Dolphin's board of directors declared a 10 percent stock dividend on April 1, 2012, when the market value of the stock was $7 per share. Accordingly, 1,000 new shares were issued. All of Dolphin's stock has a par value of $3 per share. Assuming Dolphin sustained a net loss of $12,000 for the quarter ended March 31, 2012, what amount should Dolphin report as retained earnings as of April 1, 2012?

The Stockholders' Equity Section of Dolphin Corporation as of December