The Wendell Company provided the following for its accounting year ending December 31, 2016: Common shares with
Question:
The Wendell Company provided the following for its accounting year ending December 31, 2016:
Common shares with a par value of $10,000 were sold for $44,000 in cash.
Cash dividends totalling $21,600 were declared, of which $16,600 were paid.
Net income was $64,000 at 5%.
stock dividend resulted in a distribution of common shares, which had a par value of $5,000 and a market value of $24,600
Treasury shares repurchased in a prior year for $10,600 were resold for $8,600 and in the journal entry to record the sale, additional paid-in principal was debited in the amount of the difference between the repurchase price and the resale price.
What is the amount of the increase in Wendell's retained earnings?
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,