Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000...

Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is

A) $60,000

B) $50,00

C) $55,000

D) $65,000

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A company with 81,210 authorized shares of $7 par common stock issued 47,603 shares at $12 per share. Subsequently, the company declared a 2% stock dividend on a date when the market price was $22 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?

Select the correct answer.

A) $6,664

B) $20,945

C) $14,281

D) $35,732

Solutions

Expert Solution

Amount of cash for the payment of dividends = Beginning dividends payable + Cash dividends Declared -Ending dividends payable

Amount of cash for the payment of dividends = 10000+50000 - 5000

Amount of cash for the payment of dividends = $ 55000

Answer

C) $55,000

Total Stock Dividend =2%*47603*22

Total Stock Dividend = $ 20945

Amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend = $ 20,945

Answer

B) $20,945

ekkarill92 answered 2 years ago

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