Memorial Corporation
Information from the financial records is presented in the following table:
$\begin{array}{lr}
\text { Retained earnings, December 31, Year 2 } & \$ 400,000 \
\text { Retained earnings, December 31, Year 1 } & 250,000 \
\text { Dividends payable, December 31, Year 2 } & 20,000 \
\text { Dividends payable, December 31, Year 1 } & 30,000 \
\text { Net income for Year 2 } & 200,000
\end{array}$
-Refer to the figure Memorial Corporation.There were no retained earnings transactions other than those dealing with dividends and net income.What were total dividends declared during Year 2?

Question

Memorial Corporation
Information from the financial records is presented in the following table:
 $\begin{array}{lr}
\text { Retained earnings, December 31, Year 2 } & \$ 400,000 \
\text { Retained earnings, December 31, Year 1 } & 250,000 \
\text { Dividends payable, December 31, Year 2 } & 20,000 \
\text { Dividends payable, December 31, Year 1 } & 30,000 \
\text { Net income for Year 2 } & 200,000
\end{array}$
-Refer to the figure Memorial Corporation.There were no retained earnings transactions other than those dealing with dividends and net income.What were total dividends declared during Year 2?

Quizplus · Accepted Answer

The change in retained earnings from Year 1 to Year 2 is $150,000 ($400,000 - $250,000). Given the net income of $200,000, the dividends declared must be $50,000 ($200,000 - $150,000).

Memorial Corporation Information from the Financial Records Is Presented in the Following

Memorial Corporation
Information from the Financial Records Is Presented in the Following