Question

Norris Company declared cash dividends of $60,000 during the year. Cash dividends payable were $20,000 at the beginning of the year and $25,000 at the end of the year. The amount of cash Norris Co. used for payment of dividends during the year wasa. $65,000b. $55,000c. $105,000d. $80,000

Answer 1

Answer:

Dividend paid during the year will be $55000

So option (B) will be the correct answer

Explanation:

We have given dividend declared during the year=$60000

Dividend payable at the beginning of the year=$20000

Dividend payable at the end of the year=$25000

We have to find the dividend paid during year

Dividend paid during the year=Dividend payable at the beginning of the year+ Dividend declared during the year-Dividend payable balance at the end of the year

Dividend paid during the year=$20000+$60000-$25000=$55000

So option (b) will be the correct answer