Katie s dinor spent $113,800 to refurbish its current facility. the firm borrowed

The amount of each monthly payment is $1,254.72.

Explanation:

Amount Borrowed = 65% ×$113,800 = $73,970

Annual Interest = 6.82%

Monthly Interest Rate = 6.82% / 12 = 0.5683%  

Number of Payments = 12 * 6 = 72

Let $X be the monthly payment.

$73,970 = $X×PVIFA(0.5683%, 72)

73,970 = X×(1-(1/1.005683)^72)/0.005683

73,970 = X×58.9535

X = $1,254.72

Therefore, the amount of each monthly payment is $1,254.72.

The capitalization of retained earnings is equal to:

The par value of the shares to be distributed.

Explanation:

Common stock par value = $10

Capitalization of retained earnings is the conversion of retained earnings into capital.  A corporation does this conversion when it issues stock dividends or new additional shares from its retained earnings.  It is a way of rewarding stockholders for their stock-holdings.  The accounting process involved is to debit retained earnings and credit the common stock with the bonus dividends.  And the amount for this transaction is calculated with the par value of the stock and not the market value and the number of bonus shares issued.