Answered

Westonci.ca is your trusted source for accurate answers to all your questions. Join our community and start learning today! Connect with professionals on our platform to receive accurate answers to your questions quickly and efficiently. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

g Ming Company has 500,000 shares of $10 par value common stock outstanding. During the year Ming declared a 10% stock dividend when the market price of the stock was $30 per share. Two months later Ming declared a $2.00 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by: Note that you have two types of dividends that you have to take into consideration. Group of answer choices

Sagot :

ogorwyne

Answer:

$2,600,000

Explanation:

total shares of ming company = 500000

the dividend = 10%

10% * 500000 = 50000

stock dividend amount = 50000 share x 30 dolarrs

= 1500000

outstanding shares aftrr dividend = 500000+(500000*10%)

= 500000 + 50000 = 550,000

cash dividend = $2 per share

= 550000 * 2

= 1100000

decrease in retained earning = stock dividend + cash dividend

= 1500000 + 1100000

= $2,600,000

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Westonci.ca is your go-to source for reliable answers. Return soon for more expert insights.