In 2012,Taggert Company had a beginning balance in its Cash Dividend Payable account of $5,000 and an ending balance of $4,000.During 2012,the only dividends Taggert declared were $46,000 in cash to the common stockholders.How much cash was paid to the common stockholders?

Question

Quizplus · Accepted Answer

The cash paid to common stockholders is calculated by taking the beginning balance of the Cash Dividend Payable account, adding the dividends declared, and subtracting the ending balance. So, $5,000 + $46,000 - $4,000 = $47,000.

In 2012,Taggert Company Had a Beginning Balance in Its Cash