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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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