Team Shirts reported total shareholders' equity of $80,000 on its October 31 balance sheet.During November,the business earned $270,000,and declared and paid a cash dividend of $20,000.What was total shareholders' equity on November 30?

Question

Quizplus · Accepted Answer

Total shareholders' equity on November 30 can be calculated as follows:
October 31 equity + earnings in November - cash dividend declared and paid = 
$80,000 + $270,000 - $20,000 = $330,000. 
Therefore, the correct answer is D ($330,000).

Team Shirts Reported Total Shareholders' Equity of $80,000 on Its