The following information for Kellman Inc. is available at the end of 2019. Total assets on 12/31/2018 $72,500Total assets on 12/31/2019 78,300Total liabilities on 12/31/2018 12,100Total liabilities on 12/31/2019 9,800Common stock on 12/31/2018 50,000Common stock on 12/31/2019 50,000Net income for 2019 14,700Calculate the amount of dividends reported on the retained earnings statement for 2019.

Question

Marlee Norton

Business

6 October, 19:21

The following information for Kellman Inc. is available at the end of 2019. Total assets on 12/31/2018 $72,500Total assets on 12/31/2019 78,300Total liabilities on 12/31/2018 12,100Total liabilities on 12/31/2019 9,800Common stock on 12/31/2018 50,000Common stock on 12/31/2019 50,000Net income for 2019 14,700Calculate the amount of dividends reported on the retained earnings statement for 2019.

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Diego Mccullough · Answer 1

The di vidend amount is $ 6,600

Explanation:

12/31/2018 12/31/2019

$ $

Total Assets 72,500 78.300

Total Liabilities 12,100 9,800

Common Stock 50,000 50,000

Retained Earnings (balancing) 10,400 18,500

Based on the data tabulated above, the increase in Retained earnings is $ 18,500 - $ 10,400 = $ 8,100

Retained Earnings Ending = Retained Earnings Beginning + Net Income - Dividends

$ 18.500 = $ 10,400 + 14.700 - Dividends

so by solving the equation, the dividend amount is $ 10,400 + $ 14 700 - $ 18,500 = $ 6,600