Company report as retained earnings


Please assist with the given problem.

On December 31, 2005 the stockholders' equity section of Mercedes Corporation was as follows:

Common stock ($5 par value); authorized          30,000
Shares, issued and outstanding 9,000 shares    $45,000
Additional paid-in capital                                   58,000
Retained earnings                                            73,000
Total stockholders' equity                              $176,000

On March 1, 2006 the board of directors declared a 10% stock dividend and accordingly, 900 additional shares were issued. The fair value of the stock at that time was $8 per share. For the three months ended march 31, 2006 Mercedes sustained a net loss of $16,000.

Required:

What amount should the company report as retained earnings on its quarterly financial statement dated march 31, 2006?

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Accounting Basics: Company report as retained earnings
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