question archive Using the following information of JSM Corp: Net Income = $95,000,000 Beginning retained earnings = $240,000,000 Dividends paid = $20,000,000 Dividends declared = $30,000,000 The company's ending retained earnings are closest to: Group of answer choices a
Using the following information of JSM Corp: Net Income = $95,000,000 Beginning retained earnings = $240,000,000 Dividends paid = $20,000,000 Dividends declared = $30,000,000 The company's ending retained earnings are closest to: Group of answer choices a
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Using the following information of JSM Corp:
Net Income = $95,000,000
Beginning retained earnings = $240,000,000
Dividends paid = $20,000,000
Dividends declared = $30,000,000
The company's ending retained earnings are closest to:
Group of answer choices
a.) $315,000,000
b.) $305,000,000
c.) $115,000,000
d.) No answer text provided.
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RE = Beginning Period RE + Net Income/Loss - Cash Dividends - Stock Dividends
RE= 240,000,000+95,000,000-20,000,000
= 315,000,000
Step-by-step explanation
When a stock dividend is declared, the amount to be debited is calculated by multiplying the current stock price by shares outstanding by the dividend percentage. When paid, the stock dividend amount reduces retained earnings and increases the common stock account.
