Reference no: EM132935219
The stockholders' equity of Chelan Inc. at December 31, 2018, appears below:
Common stock, $15 par value, 200,000 shares authorized, 135,000 shares issued and outstanding 2,025,000
Paid-in capital in excess of par value 1,750,000
Retained earnings 2,375,000
During 2019, the following transactions occurred:
May 10: Declared a 10% common stock dividend when market value was $40 per share
August 31: Issued the stock dividend declared on June 15.
December 10: Declared a cash dividend of $2.50 per share to be paid in January 2020.
December 31: Recognized net income of $ 1,087,000.
Problem 1: Compute the year-end balance of the retained earnings for 2019.