Superior has provided the following information for its recent year of operation: The common stock account balance at the beginning of the year was $10,000 and the year-end balance was $15,000. The additional paid-in capital account balance increased $2,600 during the year. The retained earnings balance at the beginning of the year was $65,000 and the year-end balance was $80,000. Net income was $27,000. How much were Superior's dividend declarations during its recent year of operation?

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Answer:

The $12,000 dividend declaration is made during its recent year of operation

Explanation:

In this question, we have to apply the formula which is shown below:

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

$80,000 = $65,000 + $27,000 - dividend paid

$80,000 = $92,000 - dividend paid

So, the dividend paid equals to

= $92,000 - $80,000

= $12,000

These items would be displayed in the retained earnings statement

The declaration date is the day on which a firm promises to pay a dividend in writing. The ex-dividend date, often known as the ex-date, is the date when a stock ceases to trade without a dividend.

The $12,000 dividend declaration is made during its recent year of operation.

How to compute dividend declaration?

[tex]\text{The ending balance of retained earning} = \text{Beginning balance of retained earnings} + \text{net income - dividend paid}\\$80,000 = $65,000 + $27,000 - \text{dividend paid}\\\\$80,000 = $92,000 - \text{dividend paid}\\\\\\\\text{So, the dividend paid equals to:}\\\\= $92,000 - $80,000\\\\= $12,000[/tex]

Therefore, the retained earnings statement would include these things.

For more information about Dividend declarations, refer below

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