Cash Flow Employee-fac Course: AC WileyPL X C Chegg Stu Course wed4-18(writt Che

Question

Cash Flow Employee-fac Course: AC WileyPL X C Chegg Stu Course wed4-18(writt Chegg Stu https//edugen.wileyplus.com/edugen/lti/main.uni C Search Burnley, Understanding Financial Help I System Announcements BACK NEXT ASSIGNMENT RESOURCES Application Problem 11-12 (Part Level Submission) The shareholders equity of Deer Ltd. at the end of 2016 and 2015 appeared as follows: 2016 015 Share capital, preferred shares, $2 cumulative, 2,000,000 shares authorized, 27,200 shares issued Share capital, 5,000,000 common shares authorized, 1,190,000 $217,600 $217,600 common shares issued (2015-990,000 shares) Retained earnings Total shareholders' equity 4,960,000 3,960,000 4,066,000 3,254,000 $9,243,600 $7,431,600 pplication Problen 11-12 (Part Leve Proble During 2016, Deer paid a total of $115,700 in cash dividends. 12-16 Review Score Your answer is correct. Assume the preferred shares were not in arrears at December 31, 2015. How was the $115,700 in cash dividends distributed between the two types of shares in 2016? 2016 54,400 61,300 115,700 SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT EN (j)? ? ? 13/04/2018 06:02 p.m Pür

Explanation / Answer

Answer

Retained earning 2016 $4066000
(-) retained earnings 2015 $3254000
Difference = $812,000

This difference include addition of Net Income and deduction of Dividends of $115,700

Net Income (-) Dividends = $812,000
Net Income = $812,000 + $115,700
Net Income = $927,700

No.

Account & Explanation

Debit

Credit

1

Cash

$1000000

Common Stock

$1000000

(common shares issued)

2

Dividends

$115700

Dividends payable

$115700

(dividends declared)

3

Dividends payable

$115700

Cash

$115700

(dividends paid)

4

Income Summary

$927700

Retained Earnings

$927700

(net income closed to retained earnings)

5

Retained Earnings

$115700

Dividends

$115700

(dividends declared for the year closed to retained earnings)

No.

Account & Explanation

Debit

Credit

1

Cash

$1000000

Common Stock

$1000000

(common shares issued)

2

Dividends

$115700

Dividends payable

$115700

(dividends declared)

3

Dividends payable

$115700

Cash

$115700

(dividends paid)

4

Income Summary

$927700

Retained Earnings

$927700

(net income closed to retained earnings)

5

Retained Earnings

$115700

Dividends

$115700

(dividends declared for the year closed to retained earnings)

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.