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1. Restridtions of retained earnings may be dasified as a. legal. d. All of these choices are correct. 2. A corporation has a $500,000 beginning balance in Retained Earnings. Its net income for the year was $200,000. Sales revenue amounted to $1,000,000, and dividends declared and paid by year-end amounted to $100,000. What was the ending balance in Retained Earnings? a. $600,000 b. $1,400,000 c. $700,000 d. $1,200,000 3. On the balance sheet, the balance of Treasury Stock is c. disclosed only in the notes d. not reported. 926 AM
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Answer #1

Answer:-

1.(D) Restrictions on retained earnings may be classified as legal,descretionary or contractual(d) all of the above.

2.(A)$600000

Opening Balance+Current Year earnings--Dividends paid=Balance at the year end

$500000+$200000-$100000=$600000.

3.On the balance sheet treasury stock is (b) deducted from shareholder's equity.

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