Multiple Choice
Dale Murphy Company had beginning retained earnings of $60,000.During the year the company had net income of $20,000,and paid dividends of $7,500.The Company repurchased 1,000 shares of its stock for $45 during the period.What is the net effect of these transactions on the items shown below?
A) increase Retained earnings; increase Total shareholders' equity
B) increase Retained earnings; decrease Total shareholders' equity
C) decrease Retained earnings; increase Total shareholders' equity
D) decrease Retained earnings; decrease Total shareholders' equity
Correct Answer:
Verified
Correct Answer:
Verified
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