Question

In: Accounting

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

Expert Solution

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

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

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?

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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