Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to answer question 41 and 42. On January 1, 2018, Tarow Corporation had 80,000 common shares, recorded at $600,000, and retained

Use the following information to answer question 41 and 42. On January 1, 2018, Tarow Corporation had 80,000 common shares, recorded at $600,000, and retained earnings of $1,000,000. During the year, the following transactions occurred:

Apr.

2

Issued 5,000 common shares at $20 per share.

June

15

Declared a cash dividend of $0.25 per share to common shareholders of record on June 30, payable on July 10.

Aug.

21

Declared a 5% stock dividend to common shareholders of record on September 5, distributable on September 20. The shares were trading for $22 a share on August 21, $24 on September 5, and $26 on September 20.

Nov.

1

Issued 3,000 common shares at $25 per share.

Nov.

15

Declared and issued a 2-for-1 stock split

Dec.

20

Declared a cash dividend of $0.30 per share to common shareholders of record on December 31, payable on January 10.

Dec.

31

The net income for the year of 2018 is $20,000

The amount of total dividends declared on common shares on August 21, 2018 is:

Question 41 options:

$88,000

$93,500

$110,500

$35,000

The balance of retained earnings as at December 31, 2018 after the end-of-year closing is:

Question 42 options:

$1,000,000

$829,900

$877,575

$849,900

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_step_2

Step: 3

blur-text-image_step3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

I receive useful feedback about my performance.

Answered: 1 week ago

Question

I am encouraged to offer opinions/suggestions.

Answered: 1 week ago