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SCORPION-xisa [38]
3 years ago
12

The following data are extracted from the stockholders' equity section of the balance sheet of Guthrie Corporation: 12/31/19 12/

31/20 Common stock ($1 par value) ............... $50,000 $51,000 Paid-In capital in excess of par .......... 25,000 29,000 Retained earnings ......................... 50,000 52,300 During 2020, the corporation declared and paid cash dividends of $7,500 and also declared and issued a 2% stock dividend amounting to $5,000. Net income for 2020 was QUIZLET
Business
1 answer:
Inessa [10]3 years ago
7 0

Answer:

$14,800

Explanation:

We will get the Net Income by preparing Trial-account of Retained earnings.

                        Retained earnings

Cash dividend     $7,500       Beginning balance  $50,000

Stock dividend    $5,000       Net Income              $14,800 (Balance figure)

Ending balance   <u>$52,300</u>                                       <u>              </u>

Total                     <u>$64,800</u>                                       <u>$64,800</u>

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