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Changes in the balance sheet accounts at June 30, 20X1 and 20X2 for the Poker Company are presented below: Increase (Decrease) Assets Cash $ 480,000
Changes in the balance sheet accounts at June 30, 20X1 and 20X2 for the Poker Company are presented below:
Increase | |||
(Decrease) | |||
Assets | |||
Cash | $ | 480,000 | |
Accounts receivable | 200,000 | ||
Inventory | 300,000 | ||
Long-term investments | 200,000 | ||
Equipment | (200,000 | ) | |
Accumulated depreciation | (60,000 | ) | |
Liabilities and Stockholders Equity | |||
Accounts payable | $ | (40,000 | ) |
Dividends payable | 400,000 | ||
Notes payableCurrent | (200,000 | ) | |
Notes payableLong-term | 400,000 | ||
Common stock, $1.00 par | 300,000 | ||
Additional paid-in capital | 100,000 | ||
Retained earnings | 80,000 | ||
Additional Information for 20X2: Net income was $480,000 and dividends of $400,000 were declared. Common stock was issued for cash. A new long-term investment was acquired for $360,000. A long-term investment was sold for $160,000. Equipment that cost $600,000 was sold for $200,000. The book value of those assets was $150,000.
The dividends actually paid during 20X2 are:
Multiple Choice
-
$0.
-
$270,000.
-
$300,000.
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$400,000.
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