Question

Brenda wants to find the amount of dividend paid to the shareholders by JSL Inc. specifically show the dividends paid to shareholders?

Answer 1

Answer: Statement of retained earnings.

Explanation:

JSL will show the dividends in the statement of retained earnings. The retained earnings are regarded as the earnings which the business keeps and doesn't distribute to the shareholders.

The statement of retained earnings simply refers to the financial statement which outlines the changes in the retained earnings over a particular period of time for a company. Profits bring about an increase to the retained earnings. On the other hand, when dividends are paid out, there's a reduction in the retained earnings.