Question - The stockholders' equity of Innovative Fitness Products Inc. at December 31, 2013 appears below:
Common stock, $8 par value, 200,000 shares authorized, 120,000 shares issued and outstanding $1,320,000
Paid in capital in excess of par value 500,000
Retained earnings 740,000
During 2014, the following transactions occurred:
June 15: Declared a 10% common stock dividend when market value was $15 per share
June 30: Issued the stock dividend declared on June 15.
December 10: Declared a cash dividend of $1.50 per share to be paid in January 2015.
December 31: Recognized net income of $ 376,000.
Compute the year-end balance of the retained earnings for 2014.