Capital in excess of par and Retained Earnings?
Hello! I’ve been working on an exercise for one of my classes, and I’m having difficulty solving one of the problems. I have the following information:
- Common stock: $1,600,000
- Retained earnings: $900,000
- Net income: $1,000,000
- Shares issued: 90,000
- Shares outstanding: 80,000
- Dividends declared and paid: $800,000
The common stock was sold at a price of $20 per share.
I would like to know the following:
- What is the amount of capital in excess of par?
- What was the amount of retained earnings at the beginning of the year?
- How do I determine capital in excess of par and retained earnings from this information?
Thank you for your assistance!
1 Answers
Feb 17, 2025
Shares Issued 90,000 x $20 = 1,800,000 – 1,600,000 at par value = 200,000 Capital in Excess of Par
Retained Earnings at end of year – 900,000
Less Net Income – 1,000,000
Plus Dividends declared – 800,000
Retained Earnings, beginning of year – 700,000
Related Questions
Does Wells Fargo Bank open on Sundays in Bakersfield, California, specifically at the intersection of White Lane and Gos...
Please find below the present and future values for different interest rates. Compounding and discounting occur annually...
I’m trying to make my car payment online, and it’s asking for a bank account nickname. What does that mean, and what sho...
What is the reason that all shareholders tend to agree on a common goal for the financial manager?
Presented below are selected account balances for Homer Winslow Co. as of December 31, 2014. Instructions: Prepare the...
On December 31, Fighting Okra Cooking Services reported the following revenues and expenses.
Presented below is information from Perez Computers Incorporated. On July 1, the company sold $20,000 worth of computers...
Is it a GAAP requirement to attach a copy of a check to all documents for filing purposes, and if so, how many copies ar...
Presented below is the information regarding the equipment owned by Suarez Company as of December 31, 2017. Please revie...
What explains the paradox of Venezuela, a country rich in oil and gas resources, facing such severe economic challenges?