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Anna [14]
3 years ago
13

At October 1, Arcade Fire Enterprises reported stockholders' equity of $70,000. During October, no stock was issued and the comp

any earned net income of $18,000. If stockholders' equity at October 31 totals $78,000, what amount of dividends were paid during the month?
Business
1 answer:
viva [34]3 years ago
5 0

Answer:

$10,000

Explanation:

As provided no equity is issued, therefore,

Common stock + Net income = Stockholder's equity

We know common stock = $70,000

Further there might be some dividend paid, which shall be deducted from net income to compute total value of Stockholder's equity.

Therefore,

$70,000 + $18,000 - Dividend = $78,000

$88,000 - $78,000 = Dividend = $10,000

Therefore, dividends paid during the month = $10,000

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