ACC 304 All Assignments ACC 304 All Assignments | Page 8

23) On December 31, 2014, the stockholders' equity section of Arndt,
Inc., was as follows:
Common stock, par value $10; authorized 30,000 shares;
issued and outstanding 9,000 shares $90,000
Additional paid-in capital
Retained earnings
116,000
184,000
Total stockholders' equity
$390,000
On March 31, 2015, Arndt declared a 10% stock dividend, and
accordingly 900 additional shares were issued, when the fair value of
the stock was $18 per share. For the three months ended March 31,
2015, Arndt sustained a net loss of $32,000. The balance of Arndt’s
retained earnings as of March 31, 2015, should be
24) On September 1, 2014, Halley Co. issued a note payable to Fidelity
Bank in the amount of $1,800,000, bearing interest at 10%, and payable
in three equal annual principal payments of $600,000. On this date, the
bank's prime rate was 11%. The first payment for interest and principal
was made on September 1, 2015. At December 31, 2015, Halley should
record accrued interest payable of
ACC 304 Final Exam Part 1 (3 Sets) 2