Agni Corporation's net income for the year is $450,000. On June 30, a $0.75 per share cash dividend was declared for all common stockholders. Common stock in the amount of 38,000 shares was outstanding at the time. The market price of Agni's stock at year-end is $18 per share. Agni had a $1,100,000 credit balance in retained earnings at the beginning of the year. Required: Calculate the ending balance of retained earnings.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 21EB: Brunleigh Corporation earned net income of $200,000 this year. The company began the year with...
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Agni Corporation's net income for the year is $450,000. On June 30, a
$0.75 per share cash dividend was declared for all common stockholders.
Common stock in the amount of 38,000 shares was outstanding at the
time. The market price of Agni's stock at year-end is $18 per share. Agni
had a $1,100,000 credit balance in retained earnings at the beginning of
the
year.
Required:
Calculate the ending balance of retained earnings.
Transcribed Image Text:Agni Corporation's net income for the year is $450,000. On June 30, a $0.75 per share cash dividend was declared for all common stockholders. Common stock in the amount of 38,000 shares was outstanding at the time. The market price of Agni's stock at year-end is $18 per share. Agni had a $1,100,000 credit balance in retained earnings at the beginning of the year. Required: Calculate the ending balance of retained earnings.
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