Ask Question
9 August, 19:51

At the beginning of 2011, hamilton company had retained earnings of $150,000. during the year hamilton reported net income of $75,000, sold treasury stock at a "gain" of $27,000, declared a cash dividend of $45,000, and declared and issued a small stock dividend of 1,500 shares ($10 par value when the market value of the stock was $30 per share. the amount of retained earnings available for dividends at the end of 2011 was:

+1
Answers (1)
  1. 9 August, 20:46
    0
    To solve for retained earnings, you have to add the net income from the beginning retained earnings then deduct dividends.

    Based on the problem, these are the given:

    Beginning Retained Earnings = $150,000

    Net Income = $75,000

    Cash Dividend = $45,000

    Stock Dividend = $15,000

    $150,000 + $75,000 - $60,000 = $165,000 is the retained earnings available for dividends at the end of 2011
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “At the beginning of 2011, hamilton company had retained earnings of $150,000. during the year hamilton reported net income of $75,000, sold ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers