Based on the information in Table 3-1, calculate the amount of dividends paid by
ID: 2737190 • Letter: B
Question
Based on the information in Table 3-1, calculate the amount of dividends paid by Jones Company in 2010 (no assets were disposed of during the year, and there was no change in interest payable or taxes payable).
Jones Company
Financial Information
December 2009
December 2010
Net Income
$2,000
$4,000
Accounts receivable
750
950
Accumulated depreciation
1,000
1,500
Common stock
4,500
5000
Paid-in capital
7,500
8500
Retained earnings
1,500
3,500
Accounts payable
750
750
December 2009
December 2010
Net Income
$2,000
$4,000
Accounts receivable
750
950
Accumulated depreciation
1,000
1,500
Common stock
4,500
5000
Paid-in capital
7,500
8500
Retained earnings
1,500
3,500
Accounts payable
750
750
Explanation / Answer
Calculation of the dividend paid Opening Retained Earnings 1500 Add: Net Income 4000 Less: Closing RetainedEarnings -3500 Dividend Paid 2000 The Dvidend Paid = $ 2000
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