Been There Used Furniture Been There Used Furniture began operation on January 1,2013,with an initial investment of $100,000 from each of its five stockholders.During the year,the company had net income of $200,000 and paid dividends of $50,000.
-Refer to Been There Used Furniture.The dividends for the year

Question

Quizplus · Accepted Answer

Dividends are reported on the Statement of Retained Earnings, as they represent a distribution of the company's earnings to its stockholders, reducing the amount of earnings that are retained. Dividends do not affect the amount of capital stock reported by the company, nor are they considered to be part of operating expenses or reported on the Income Statement.

Been There Used Furniture Been There Used Furniture Began Operation