Answer:
Superior's dividend declarations during its recent year of operation is $22,000
Explanation:
Superior's dividend declarations would be the difference between what the Business generated in Net Income and what was transferred to Retained earnings for the year.
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<u>Statement of Retained Earnings.</u>
Opening Retained Earnings = $75,000
Closing Retained Earnings = $92,000
Addition to Retained Earnings = $17,000
This implies:
a. of the Net Income for the year = $39,000
b. Transferred to Retained Earnings = $17,000
Dividend Paid therefore is = $22,000 (a minus b)
And the Shareholders Equity Position would be:
Opening common stock Account = $13,000
Additional Paid in Capital = $3,500 (Closing Balance less Opening)
Premium on Paid up Capital = $300 ($3,800 less $3,500 = $300)
Retained earnings = $92,000
Total Shareholders Equity = $108,800