What amount should gunkel report as retained earnings


The stockholders' equity section of Gunkel Corporation as of December 31, 2010, was as follows:

Common stock, par value $2; authorized 20,000 shares;
issued and outstanding 10,000 shares $ 20,000
Paid-in capital in excess of par 30,000
Retained earnings 75,000
$125,000

On March 1, 2011, the board of directors declared a 15% stock dividend, and accordingly 1,500 additional shares were issued. On March 1, 2011, the fair market value of the stock was $6 per share. For the two months ended February 28, 2011, Gunkel sustained a net loss of $10,000.

What amount should Gunkel report as retained earnings as of March 1, 2011?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What amount should gunkel report as retained earnings
Reference No:- TGS086689

Expected delivery within 24 Hours