Question 32 (2 points) Saved At December 31, 2018, Laurier Limited had the following shareholders' equity: Common shares, 75,000 issued Retained earnings $300,000 $750,000 During 2019, the following events occurred: On February 1, the company declared and paid a $0.50 cash dividend. On June 10, the company split the common shares three for one. On December 1, the company declared and paid a $0.40 cash dividend. At December 31, the company reported a loss of $106,000 for the year. At December 31, 2019, the balance of retained earnings is $546,500 $576,500 O $620,000 O $380,000 None of the above Wordmart Inc. purchased equipment for $48,000, and estimated that the equipment will have a $4,000 residual value at the end of its 8-year useful life. Using the double diminishing-balance method, the depreciation expense for the third year would be O $9,000. O $6,750. O $6,188. O $5,500. O None of the above. The shareholders' equity section of Starr Corporation at December 31, 2015 included the following: $3 preferred shares, cumulative, 10,000 shares authorized, 9,000 shares issued Common shares, 500,000 shares authorized, 400,000 shares issued $900,000 $2,000,000 Dividends were not declared on the preferred shares in 2015 and are in arrears. On September 15, 2016, the board of directors declared dividends on the preferred shares for 2015 and 2016 to shareholders of record on October 1, 2016, payable on October 15, 2016. On November 1, 2016, the board of directors declared a $0.50 per share dividend on the common shares, payable November 30, 2016, to shareholders of record on November 15, 2016. Using the above information, the correct entry on November 30, 2016 would be: O Debit cash dividend $200,000; credit dividend payable $200,000 Debit dividend payable $200,000; credit cash $200,000 Debit cash dividend $1,000,000; credit dividend payable $1,000,000 Debit dividend payable $1,000,000; credit cash $1,000,000 None of the above