Cash dividends of $45,000 were declared during the year. Cash dividends payable were $10,000 at the beginning of the year and $15,000 at the end of the year. The amount of cash for the payment of dividends during the year isA. $50,000B. $40,000C. $55,000 D. $35,000

Question

Jonathon

Business

18 April, 22:21

Cash dividends of $45,000 were declared during the year. Cash dividends payable were $10,000 at the beginning of the year and $15,000 at the end of the year. The amount of cash for the payment of dividends during the year isA. $50,000B. $40,000C. $55,000 D. $35,000

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Jaydon Prince · Answer 1

The amount of cash for the payment of dividends during the year is B. $40,000

Explanation:

To Determine the amount of cash for the payment of dividends during the year, we open a Dividends Payable T - Account and find the amount via missing figure approach as follows:

Debits:

Cash (Balancing figure) $40,000

Ending of year Dividends Payable $15,000

Totals $55,000

Credits:

Beginning of year Dividends Payable $10,000

Dividends declared during the year $45,000

Totals $55,000