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The Stockholders Equity accounts of McDonald's Corporation on January 1, 2015 were:
STOCKHOLDERS EQUITY
Preferred stock, 7%, $100 par cumulative, 5000 shares authorized $300,000
Common Stock, $5 par value, 400,000 shares authorized 1,000,000
Additional Paid-in Capital:
Preferred 15,000
Common 400,000
Retained 488,000
Treasury stock-common (5,000 shares @ $8 costs) 40,000
During 2016, the corporation had the following transactions and events pertaining to stockholders equity:
FEB. 1 Issued 5,000 shares of common stock for $35,000
June 14 Sold 4000 shares out of the treasury stock for $34,000
December 31, determine that net income for the year was $215,000. Dividend of $80,000 were declared and paid by the board.
1. What amount is the ending retained earnings balance as of DEC. 31, 2015?
2. How many shares of common stocks are issued?
2b. How many shares are outstanding?.
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