(Computation of Retained Earnings) The following information has been taken from the ledger accounts of Isaac Stern Corporation Total income since incorporation $317,000 Total cash dividends paid 60,000 Total value of stock dividends distributed 30,000 Gains on treasury stock transactions 18,000 Unamortized discount on bonds payable 32,000 InstructionsDetermine the current balance of retained earnings.

Question

(Computation of Retained Earnings) The following information has been taken from the ledger accounts of Isaac Stern Corporation

Total income since incorporation $317,000
Total cash dividends paid 60,000
Total value of stock dividends distributed 30,000
Gains on treasury stock transactions 18,000
Unamortized discount on bonds payable 32,000

Instructions
Determine the current balance of retained earnings.

Expert Answer

1 Rating

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Financial Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: What are the types of agreement related to sale-leaseback agreement?

A: Sale and Leaseback Agreement is a kind of financial transaction. This is a situation that arises whe...

Q: What account would be debited (1), what account would be credit (2), and what amount would be paid t...

A: Bonds Bond is a long-term financial instrument issued by a company for which the company pays intere...

Q: What is the difference between a contribution approach income statement and a traditionalapproach in...

A: Contribution Approach Income Statement: Under this approach, contribution amount is the main focus a...

Q: What is the estimated worth today of an amount of cash to be received (or paid) in the future called...

A: When the amount to be paid or received in future is discounted to find its worth today, this is know...

Q: What is business ethics?

A: Ethics:   Ethics in business is a much debated yet less followed topic. Every business has to functi...

Q: Rode Inc. incurred a net operating loss of $500,000 in 2017. Combined income for 2015 and 2016 was $...

A: Prepare the journal entry to record the loss carry back:

Q: The investments of Harlon Enterprises included the following cost and fair value amounts ($ in milli...

A: Click to see the answer

Q: Your client, Cascade Company, is planning to invest some of its excess cash in 5-year revenue bonds ...

A: (a) To determine exactly the fair value for the security of the particular company, the necessary th...

Q: Iraq Inc. makes recyclable pots for plants and uses JIT to manage inventories and production. The fo...

A: Material quantity variance is the difference between standard price of actual quantity and standard ...

Q: How has the Sarbanes-Oxley Act had a significant impact on corporate governance?

A: Auditing: In auditing, auditors verify the correctness and fair presentation of financial statement...

Q: Listed below are selected transactions of Baileys’ Department Store for the current year ending Dece...

A:  

Q: If a $300,000 investment has a project profitability index of 0.25, what is the netpresent value of ...

A: Profitability Index of a project means ratio of present value of future cash flows of the project wi...

Q: Hicks Cable Company has a defined benefit pension plan. Three alternative possibilities for pension-...

A: Requirement 1: Particulars Case 1 ($) Case 2 ($) Case 3 ($)         Net loss or gain 337,000 ...

Q: (Equity Securities Entries and Disclosures) Parnevik Company has the following securities in its inv...

A: Journal: Recording of a business transactions in a chronological order.

Q: Using these data from the comparative balance sheet of Sunland Company, perform vertical analysis. (...

A: Vertical Analysis:

Q: Which of the following statements is correct?(a) Both IFRS and GAAP permit revaluation of property, ...

A:   Answer:   Option d.

Q: An inexperienced accountant for Culver Corporation showed the following in the income statement: inc...

A: Comprehensive Income statement includes the Income statement and other comprehensive income for the ...

Q: Would a sale of equipment for cash be considered a financing activity or an investing activity?Why?

A: Investing activity relates to activities relating to sale or purchase of assets which is related to ...

Q: Required: 1. Classify each cost and its amount as (a) either variable or fixed and (b) either produc...

A: Cost behavior refers to an indicator which show how a cost will change in total due to change in som...

Q: The question is on the picture

A: a) Computation of Amount assigned to ending inventory and cost of goods sold under all three methods...

Q: In 2018, the Marion Company purchased land containing a mineral mine for $1,600,000. Additional cost...

A: 1. Compute depletion and depreciation of the mine and the mining facilities and equipment for 2018 a...

Q: Accounting Question

A: Contribution Margin is simply the leftover amount after direct sales costs that a company has to pay...

Q: Instructions 1. Prepare a multiple-step income statement. 2. Prepare a statement of owner’s equity. ...

A: 1) multiple-step income statement. Druid Hills Co. Income statement For the year ended May 31, 20Y8 ...

Q: Under IFRS, a company:(a) should evaluate only equity investments for impairment.(b) accounts for im...

A: Under IFRS ( International Financial Reporting Standards), Impairment loss on debt investments is ca...

Q: On September 1, 1,500 shares of M Company stock are acquired at a price of $24 per share plus a $40 ...

A: Companies which have excess cash or ideal cash can invest in fixed deposit or purchase shares of ano...

Q: Define average accumulated expenditures and explain how the amount is computed

A: Average accumulated expenditure for a particular period is an approximate amount of average debt the...

Q: Short note on cash inflow and outflow.

A: Cash Flow Statement:   It is a financial statement prepared by a company to report their cash inflow...

Q: How is it possible for a cost that is traceable to a segment to become a common cost if thesegment i...

A: Fixed Cost: It is a cost which is constant in the short run, it is not related to any change in the...

Q: Suppose you own 80 shares of Facebook common stock when the company declares a 4% stock dividend. Wh...

A: Stock dividend means dividend in the form of equity or preference shares given to the shareholders. ...