ACCT $2101$ Test $4$ Chapters $8$ & $11$

Problem $10$ points The following selected transactions took place during the current year for a company:

February Declared a $$2\mathrm{.}50$ per share cash dividend on $20,000$

$25$ shares of common stock outstanding

March $20$ Paid the cash dividends declared on February $25.$ Dr Cr

$($a$)$ Prepare the journal entries for these transactions. Febz$5$ Dividendes $50000$ Dividerds payable pr $50000$ March $20$ Pividends payable soco

$($b$)$ If Retained Earnings had a $$155,000$ credit balance on January $1,$ and net income was $$72,000$ for the current year, calculate its year$-$end balance as of December $31.$

Retained Earnings

Janunry $1$ Retained earnings $=155000$

income $=72000$

minus cash dividents $=50000$

Retaired $=$$$177,000$

Carnings

Dec $31$