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number 8

Solving for Stockholders' Equity Amounts Assume that the following amounts are known for Colten Company for the current year: Retained Earnings, beginning balance Retained Earnings, ending balance Net income Fair value of large stock dividend declared $183,000 220,000 101,000 22,000 66,000 73,000 Dividend Payable, beginning balance Dividend Payable, ending balance Required 1. Assume that the only other amount that affected Retained Earnings during the year was a cash dividend that was declared. Compute the amount of the cash dividend declared during the current year 64,000X 2. Compute the amount of cash dividends actually paid in cash to stockholders during the year 57,000X Feedback Check My Work 1) Retained Earnings is increased by Net income and reduced by cash and stock dividends. 2) Dividends payable is increased by declared cash dividends and reduced by the payment of cash dividends