Dividends and Dividend Preferences Video Lessons

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Problem: According to the comparative balance sheet, the balance of the Dividends Payable account at the beginning and end of the year was $54,000 and $52,500 respectively. The Retained Earnings Statement indicates that $80,000 in dividends was declared during the year. What amount of dividends was paid out during the year? a. $80,000 b. $54,000 c. $78,500 d. $81,500

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Problem Details

According to the comparative balance sheet, the balance of the Dividends Payable account at the beginning and end of the year was $54,000 and $52,500 respectively. The Retained Earnings Statement indicates that $80,000 in dividends was declared during the year. What amount of dividends was paid out during the year?

a. $80,000

b. $54,000

c. $78,500

d. $81,500

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