At the beginning of it\'s current fiscal year, Heygood Corp\'s balance sheet sho
ID: 2465292 • Letter: A
Question
At the beginning of it's current fiscal year, Heygood Corp's balance sheet showed assets of $360,000 and liabilities of $147,000. During the year, liabiliites decreased by $22,000. Net Income for the year was $27,000, and net assets at the end of the year were $215,000. There were no changes in the paid-in capital balance of $100,000 during the year.
Calculate the dividends, if any, declared during the year.
Which of the following is the correct answer?
None of the other answers
$125,000
$113,000
$25,000
$340,000
A.None of the other answers
B.$125,000
C.$113,000
D.$25,000
E.$340,000
Explanation / Answer
Owners Equity Assets = Liabilties + Paid In capital + Retained Earnings Beginning $360,000 = $147,000 + $100,000 + $113,000 Changes -$20,000 -$22,000 $27,000 Ending $340,000 = $125,000 + $100,000 + $115,000 $25,000 Dividends Beginning Retained Earnings = ($360,000 - $147,000 - $100,000) $113,000 Ending Retained Earnings = Net assets - Paid in capital = Ending Retained Earnings = $215,000 - $100000 = 115000 Dividend = Begining RE + Net Income + ending RE Dividend = $113,000+$27000-$115,000 $25,000
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.