The Retained earnings account for Nathan Corporation had a credit balance of $800,000 at the end of 20X0. Selected transactions during 20X1 follow: Net income was $130,000.Cash dividends declared were $60,000.Repurchased 100 shares of Nathan Corporation common stock, paying $20 per share. Each share has a $5 par value and was originally issued for $35.Sold 20 shares of Nathan Corporation common stock for $22 each. Required:Calculate Nathan’s retained earnings balance as of the end of 20X1.

Retained earnings is the accumulated earnings kept by the entity. It is shown in the balance sheet…

Answered: The Retained earnings account for…

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 32BEB: During 20X2, Evans Company had the following transactions: a. Cash dividends of 6,000 were paid. b....

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The Retained earnings account for Nathan Corporation had a credit balance of $800,000 at the end of 20X0. Selected transactions during 20X1 follow:

Net income was $130,000.
Cash dividends declared were $60,000.
Repurchased 100 shares of Nathan Corporation common stock, paying $20 per share. Each share has a $5 par value and was originally issued for $35.
Sold 20 shares of Nathan Corporation common stock for $22 each.

Required:

Calculate Nathan’s retained earnings balance as of the end of 20X1.

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