The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
During 2011, Winters entered into the following transaction: On December 2, the company declared a cash dividend of $1,050, which was paid on December 27. Winters did not declare or pay any dividends during 2010. Based on this information, what amount of dividends should be declared and paid to shareholders' with common stock?
a. $350
b. $420
c. $570
d. $385

Question

The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
  During 2011, Winters entered into the following transaction: On December 2, the company declared a cash dividend of $1,050, which was paid on December 27. Winters did not declare or pay any dividends during 2010. Based on this information, what amount of dividends should be declared and paid to shareholders' with common stock? 
a. $350
b. $420
c. $570
d. $385

Quizplus · Accepted Answer

The Answer of The shareholders' equity section of Winters Company contained the following balances as of December 31, 2010:
  During 2011, Winters entered into the following transaction: On December 2, the company declared a cash dividend of $1,050, which was paid on December 27. Winters did not declare or pay any dividends during 2010. Based on this information, what amount of dividends should be declared and paid to shareholders' with common stock? 
a. $350
b. $420
c. $570
d. $385

The Shareholders' Equity Section of Winters Company Contained the Following