Cash dividends of $85,000 were declared during the year. Cash dividends payable were $10,000 at the beginning of the year and $15,000 at the end of the year. The amount of cash for the payment of dividends during the year is

Question

Quizplus · Accepted Answer

The cash dividends paid during the year can be calculated as follows:

Cash dividends paid = Cash dividends declared - Dividends payable at beginning of year + Dividends payable at end of year
Cash dividends paid = $85,000 - $10,000 + $15,000
Cash dividends paid = $90,000 - $10,000
Cash dividends paid = $80,000

Therefore, the best choice is B, $80,000.

Cash Dividends of $85,000 Were Declared During the Year