Heliski Corp. had a $7,320 beginning balance in Dividends Payable and an ending balance in that account of $12,492. During 2009, Heliski’s board of directors declared total cash dividends of $0.20 per share on the 649,475 shares of outstanding common stock.
Required:
(a) What was the total dividend declared by Heliski Corp. during 2009?
(b) How much was paid to stockholders for dividends during 2009? Where would this amount appear on the statement of cash flows?
(c) If Heliski Corp. had declared a 10 percent stock dividend in 2009, would that declaration have affected the balance in Dividends Payable? Explain.