At October 1, Smithson Enterprises reported equity of $210,000. During October, capital shares of $30,000 were issued and the company posted a net loss of $18,000. If equity at October 31 totals $210,000, what amount of dividends were paid during the month?

Question

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The equity increased by $30,000 from issuing shares but decreased by $18,000 due to the net loss. To maintain the same equity of $210,000 at the end of October, dividends of $12,000 must have been paid.

At October 1, Smithson Enterprises Reported Equity of $210,000