Question

The accountant for Crusoe Company is preparing the company's statement of cash flows for the fiscal year just ended. The following information is available:  

Retained earnings balance at the beginning of the year	$	131,500
Cash dividends declared for the year		51,500
Proceeds from the sale of equipment		86,500
Gain on the sale of equipment		8,100
Cash dividends payable at the beginning of the year		23,500
Cash dividends payable at the end of the year		26,600
Net income for the year		97,500

What is the ending balance for retained earnings?

Multiple Choice

• $207,500.

• $177,500.

• $287,000.

• $185,000.

• $259,000.

• 2. Jordan’s net income for the year ended December 31, Year 2 was $186,000. Information from Jordan’s comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2.
  

  At December 31	Year 2			Year 1
  Common Stock, $5 par value	$	501,000		$	450,900
  Paid-in capital in excess of par		949,000			853,900
  Retained earnings		689,000			582,900

  Multiple Choice

• $106,100.

• $186,000.

• $145,200.

• $50,100.

• $95,100.

Answer 1

Retained earnings at the beginning of the year					131,500
Add: net income for the year					97,500
less :dividends declared for the year					-51500
retained earnings closing balance					177,500	answer
Cash received from sale of common stock
common stock & paid in capital in excess -end					1450000
common stock & paid in capital in excess year 1					1304800
Cash received from sale of common stock					145200	answer