Question
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 |
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