(solution) Crawford Company started the year with $30,000 in its Common

(solution) Crawford Company started the year with $30,000 in its Common

Crawford Company started the year with $30,000 in its Common Stock account and a credit balance in Retained Earnings of $12,000.   During the year, the company earned net income of $24,000 and declared and paid $10,000 of dividends.   In addition, the company sold additional common stock amounting to $14,000.   As a result, the amount of retained earnings at the end of the year would be:

$70,000

$26,000

$56,000 

$40,000

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University Questions and Answers Given Values:
Retained Earnings: $12,000
Earned Net Income: $24,000
Paid: $10,000…