Question

The retained earnings balance was $22,900 on January 1. Net income for the year was $18,100. If retained earnings had a credit balance of $23,800 after closing entries were made for the year, and if additional stock of $5,200 was issued during the year, what was the amount of dividends declared during the year

Answer 1

$17,200

Step-by-step explanation:

Calculation to determine what was the amount of dividends declared during the year

Beginning retained earnings + Net income - Dividends = Ending retained earnings.

$22,900 + $18,100 - Dividends = $23,800

Dividends=$41,000-$23,800

Dividends = $17,200

Therefore the amount of dividends declared during the year is $17,200