On December 31, 2015, Aire Dyne, Inc

On December 31, 2015, Aire Dyne, Inc. reported common stock of $120,000, retained earnings of $60,000, and total stockholders' equity equal to $500,000. No unusual accounts appeared in the stockholders' equity section of its balance sheet. During the fiscal year ended December 31, 2016, 10,000 shares of stock were sold for $40,000, of which $10,000 represented additional paid-in capital. The company reported net income of $85,000 and declared and paid dividends of $50,000.
A What is the par value of the stock?
B What is the amount of the retained earnings at December 31, 2016?
C Prepare a statement of retained earnings for Aire Dyne, Inc. for the year ended December 31, 2016, in good form.

Correct Answer:

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A $40,000 - $10,000 = $30,000
$30,000/10...

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