The stockholders' equity of Crater, Inc. at December 31, 2016, appears below:
During 2017, the following transactions occurred:
May 10: Declared a 10% common stock dividend when market value was $50 per share
August 31: Issued the stock dividend declared on June 15.
December 10: Declared a cash dividend of $3.50 per share to be paid in January 2018.
December 31: Recognized net income of $ 1,630,500.
Compute the year-end balance of the retained earnings for 2017.

Question

The stockholders' equity of Crater, Inc. at December 31, 2016, appears below:
  During 2017, the following transactions occurred:
May 10: Declared a 10% common stock dividend when market value was $50 per share
August 31: Issued the stock dividend declared on June 15.
December 10: Declared a cash dividend of $3.50 per share to be paid in January 2018.
December 31: Recognized net income of $ 1,630,500.
Compute the year-end balance of the retained earnings for 2017.

Quizplus · Accepted Answer

The Answer of The stockholders' equity of Crater, Inc. at December 31, 2016, appears below:
  During 2017, the following transactions occurred:
May 10: Declared a 10% common stock dividend when market value was $50 per share
August 31: Issued the stock dividend declared on June 15.
December 10: Declared a cash dividend of $3.50 per share to be paid in January 2018.
December 31: Recognized net income of $ 1,630,500.
Compute the year-end balance of the retained earnings for 2017.

The Stockholders' Equity of Crater, Inc