Question

Oriole Company reported retained earnings at December 31, 2018, of $312,500. Oriole had 210,000 shares of common stock outstanding at the beginning of 2019. The following transactions occurred during 2019.

1. A cash dividend of $0.50 per share was declared and paid.
2. A 5% stock dividend was declared and distributed when the market price per share was $15 per share.
3. Net income was $282,000.
Retained earning statement :
Compute the ending balance in retained earnings at the end of 2019.

Answer 1

Answer:the ending balance in retained earnings at the end of 2019=$332,000

Step-by-step explanation:

Particulars Amount

Retained earnings December 31,2018 $312,500

Less: Cash dividend $105,000

(210000 X $0.50)

Less: Stock dividend $157,500

(210,000 X 5% X $15)

$50,000

Add: Net income $282,000

Retained earnings $332,000