Question

Yulan, Inc has beginning Retained Earnings of $33,000, ending Retained Earnings of $38,500, and net income of $20,500. What was the amount of dividends declared during the year?

Answer 1

$15,000

Step-by-step explanation:

The retained earnings account balance changes as a result of the payment of dividend and the addition of the income or loss for the year.

Given that

Beginning Retained Earnings = $33,000

Ending Retained Earnings = $38,500, and

net income = $20,500

$33,000 + $20,500 - dividend declared = $38,500

dividend declared = $33,000 + $20,500 - $38,500

= $15,000