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TRIAL BALANCE December 31, 2018 Account name Debit Credit Accounts Payable $ 18,000.00 Accounts Receivable $ 54,000.00 Accumulated Depreciation furniture & fixtures $ 30,000.00 Accumulated
TRIAL BALANCE | ||
December 31, 2018 | ||
Account name | Debit | Credit |
Accounts Payable | $ 18,000.00 | |
Accounts Receivable | $ 54,000.00 | |
Accumulated Depreciation furniture & fixtures | $ 30,000.00 | |
Accumulated Other Comprehensive Income | $ 16,000.00 | |
Advertising Expense | $ 45,000.00 | |
Allowance for Doubtful accounts | $ 16,000.00 | |
Bad debt expense | $ 16,000.00 | |
Cash | $ 137,000.00 | |
Common Shares (unlimited number of shares authorized, 1000 issued) | $ 50,000.00 | |
Contributed Surplus | $ 10,000.00 | |
Depreciation Expense- Furniture and fixtures | ||
Computer Hardware | $ 115,000.00 | |
Furniture and fixtures | $ 50,000.00 | |
Goodwill | $ 77,000.00 | |
Income tax expense | $ 20,000.00 | |
Income tax payable | $ 11,000.00 | |
Insurance & licensing expense | $ 8,000.00 | |
Note Payable (installments of $13,100/year) | $ 131,000.00 | |
Prepaid Rent | $ 10,000.00 | |
Rent Expense | $ 85,000.00 | |
Retained Earnings, beginning of the year | $ 87,000.00 | |
Revenues | $ 582,000.00 | |
Salaries payable | $ 20,000.00 | |
Salary Expense | $ 331,800.00 | |
Supplies | $ 22,200.00 | |
Totals | $ 971,000.00 | $ 971,000.00 |
- On December 8, 2018, the company declared $35,000 cash dividends for the year 2018. The dividends were paid on January 8, 2019.
- On July 1, 2018, the company declared 15% common stock dividends when the market share price was $600. The shares were distributed on November 15th, 2018, when the market share price was $720
Referring to item 1&2 Discuss how dividends declared in the year will affect Common shares and Retained Earnings balances. What will be the outstanding number of common shares as of Dec 31, 2018
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