In its recent income statement, a firm reported $25 million of net income, and in its year-end balance sheet, the firm reported
$405 million of retained earnings. The previous year, its balance sheet showed $390 million of retained earnings. What were the total dividends paid to shareholders during the most recent year?
a. $ 6,750,000
b. $10,000,000
c. $11,250,000
d. $ 5,000,000
e. $ 3,500,000
a. $ 6,750,000
b. $10,000,000
c. $11,250,000
d. $ 5,000,000
e. $ 3,500,000
1 answer:
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Answer and Explanation:
As per situation the Journal entries with narrations is here below:-
As per requirement of a
1. Slice Co. investment Dr, $319,500
To Cash $319,500
(Being cash paid is recorded)
2. Slice Co. investment Dr, $27,000
To Income from Slice Co. $27,000
(Being investment is recorded)
3 Cash Dr, $13,500
To Slice Co. investment $13,500
(Being cash is recorded)
As per requirement b
1. Sales Dr, $90,000
To Total Expenses $80,000
To Dividends Declared $5,000
To Retained Earnings $5,000
(Being sales is recorded)
2. Common stock Dr, $160,000
Additional paid-in capital Dr, $40,000
Retained earnings Dr, $155,000
Income from Slice Co. Dr, $27,000
NCI in NI of Slice Co. Dr, $3,000
To Dividends declared $15,000
($1,500 + $13,500)
To Investment in Slice Co. $333,000
($319,500 + $27,000 - $135,00)
To NCI in NA of Slice Co. $37,000
(Being acquisition is recorded)
