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Lax Company provided the following information for the current year: Net loss 100,000; Total assets at December 31              3,000,000; Share capital at December 31              1,000,000; Share premium 500,000;  Dividends declared 700,000;               The debt-to-equity ratio (liabilities divided by equity) is 50% at December 31.  What was the retained earnings balance on January 1?   Choices; 1,100,000 1,300,000 500,000 600,000

Lax Company provided the following information for the current year: Net loss 100,000; Total assets at December 31              3,000,000; Share capital at December 31              1,000,000; Share premium 500,000;  Dividends declared 700,000;               The debt-to-equity ratio (liabilities divided by equity) is 50% at December 31.  What was the retained earnings balance on January 1?   Choices; 1,100,000 1,300,000 500,000 600,000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 15EA: Farmington Corporation began the year with a retained earnings balance of $20,000. The company paid...
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Lax Company provided the following information for the current year: Net loss 100,000; Total assets at December 31              3,000,000; Share capital at December 31              1,000,000; Share premium 500,000;  Dividends declared 700,000;               The debt-to-equity ratio (liabilities divided by equity) is 50% at December 31.  What was the retained earnings balance on January 1?
 
Choices;
1,100,000
1,300,000
500,000
600,000
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