Use the information below for Main Street Corp.for 2013 and 2014 to answer the following question. Assume that there were no retained earnings transactions other than those dealing with dividends and net income.How much dividends did Main Street declare during 2014?

Question

Use the information below for Main Street Corp.for 2013 and 2014 to answer the following question.  Assume that there were no retained earnings transactions other than those dealing with dividends and net income.How much dividends did Main Street declare during 2014?

Quizplus · Accepted Answer

To calculate the dividends declared, we need to look at the retained earnings statement for the year 2014. From the statement, we see that the beginning balance of retained earnings was $320,000, and the ending balance was $425,000. Therefore, the net increase in retained earnings was $425,000 - $320,000 = $105,000. This increase represents the total amount of dividends declared in 2014. Therefore, the answer is (B) $105,000.

Use the Information Below for Main Street Corp