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On January 1, 2007, Part Corporation had issued and outstanding 10,000 shares of P10 par common stock and retained earnings of P1,000,000. During the year, the following stockholders' equity transactions were recorded: March 1: A stock dividend of 1,000 shares was declared when the market price was P26 per share. The dividend was distributed on April 1, 2007. A 40% stock dividend was declared when the market price was P45 per share. The dividend was distributed on July 15, 2007. Part suffered a net loss of P12,000 in 2007, paid no cash dividends, and made no additional issues of stock for cash. What is the balance in the retained earnings account in Part on July 1: December 31 2007?

On January 1, 2007, Part Corporation had issued and outstanding 10,000 shares of P10 par common stock and retained earnings of P1,000,000. During the year, the following stockholders' equity transactions were recorded: March 1: A stock dividend of 1,000 shares was declared when the market price was P26 per share. The dividend was distributed on April 1, 2007. A 40% stock dividend was declared when the market price was P45 per share. The dividend was distributed on July 15, 2007. Part suffered a net loss of P12,000 in 2007, paid no cash dividends, and made no additional issues of stock for cash. What is the balance in the retained earnings account in Part on July 1: December 31 2007?

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 3P: On January 1, 2019, Kittson Company had a retained earnings balance of 218,600. It is subject to a...
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What is the balance in the retained earnings account in Part on December 31, 2007?

On January 1, 2007, Part Corporation had issued and outstanding 10,000 shares of P10 par common stock and retained earnings of P1,000,000. During the year, the following stockholders' equity transactions were recorded: March 1: A stock dividend of 1,000 shares was declared when the market price was P26 per share. The dividend was distributed on April 1, 2007. A 40% stock dividend was declared when the market price was P45 per share. The dividend was distributed on July 15, 2007. Part suffered a net loss of P12,000 in 2007, paid no cash dividends, and made no additional issues of stock for cash. What is the balance in the retained earnings account in Part on July 1: December 31, 2007?
Transcribed Image Text:On January 1, 2007, Part Corporation had issued and outstanding 10,000 shares of P10 par common stock and retained earnings of P1,000,000. During the year, the following stockholders' equity transactions were recorded: March 1: A stock dividend of 1,000 shares was declared when the market price was P26 per share. The dividend was distributed on April 1, 2007. A 40% stock dividend was declared when the market price was P45 per share. The dividend was distributed on July 15, 2007. Part suffered a net loss of P12,000 in 2007, paid no cash dividends, and made no additional issues of stock for cash. What is the balance in the retained earnings account in Part on July 1: December 31, 2007?
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