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xz_007 [3.2K]
3 years ago
8

The stockholders' equity section of Gunkel Corporation as of December 31, 2014, was as follows:

Business
1 answer:
mixer [17]3 years ago
5 0

Answer:

The ending balance of the retained earning is $71,000

Explanation:

For computing the ending balance of the retained earning account, we need to apply the equation which is presented below:

Ending retained earning balance = Beginning retained earning balance - net loss - dividend declared

= $95,000 - $15,000 - (1,500 shares × $6 per share)

= $95,000 - $15,000 - $9,000

= $71,000

The 15% dividend represents additional shares issued

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