The December 31, 2020, equity section of ZoomZoom Inc.’s balance sheet appears below. Required: All the shares were issu
Posted: Fri Jul 01, 2022 8:45 am
The December 31, 2020, equity section of ZoomZoom Inc.’s balancesheet appears below.
Required:All the shares were issued on January 1, 2018 (when the corporationbegan operations). No dividends had been declared during the firsttwo years of operations (2018 and 2019). During 2020, the cashdividends declared and paid totalled $643,300.1. Calculate the amount of cash dividendspaid during 2020 to each of the three classes of shares.
2. Assuming profit earned during 2020 was$1,280,000, determine the December 31, 2019, balance in retainedearnings.
3. Prepare a statement of changes in equityfor the year ended December 31, 2020. (Amounts to bededucted should be indicated by a minussign.)
Required:All the shares were issued on January 1, 2018 (when the corporationbegan operations). No dividends had been declared during the firsttwo years of operations (2018 and 2019). During 2020, the cashdividends declared and paid totalled $643,300.1. Calculate the amount of cash dividendspaid during 2020 to each of the three classes of shares.
2. Assuming profit earned during 2020 was$1,280,000, determine the December 31, 2019, balance in retainedearnings.
3. Prepare a statement of changes in equityfor the year ended December 31, 2020. (Amounts to bededucted should be indicated by a minussign.)