Balance in retained earnings at the end of the year


A company has 200,000 shares of $1 par value common stock and 20,000 shares of 7%, $100 par, cumulative preferred stock outstanding. The balance in Retained Earnings at the beginning of the year was $1,500,000 and one year's dividends were in arrears. Net income for the current year was $2,000,000. If the company paid a dividend of $3 per share on its common stock, what is the balance in Retained Earnings at the end of the year.

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Accounting Basics: Balance in retained earnings at the end of the year
Reference No:- TGS056788

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