During January 2022, Kingbird, Inc. paid a cash dividends of $2280. This transaction 1. increases expenses by $2280.2. reduces net income by $2280.3. increases stockholders' equity by $2280.4. reduces stockholders' equity by $2280.

Question

Junior Kemp

Business

7 December, 07:42

During January 2022, Kingbird, Inc. paid a cash dividends of $2280. This transaction 1. increases expenses by $2280.2. reduces net income by $2280.3. increases stockholders' equity by $2280.4. reduces stockholders' equity by $2280.

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Cheyenne Warner · Answer 1

4. reduces stockholders' equity by $2280.

Explanation:

When the cash dividend is paid the same is shown in shown in the retained earning statement

The formula is shown below:

The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid

The dividend paid reduces the assets of the organization and it also reduces the stockholder equity

Hence, the fourth option is correct