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The Following Are Relevant Account Balances from Hampton's Comparative Balance

question 44

Essay

The following are relevant account balances from Hampton's comparative balance sheet and 2017 income statement. Hampton's balance sheets:
 December 31,2017 January 1,2017 Cash $6,000$9,000 Accounts receivable 8,00012,000 Merchandise irventory 29,00018,000 Prepaid rent 6,0004,000 Equipment 100,0008000 Accumulated depreciation (28,000)(13,000) Tatal assets $121,000$110,000 Accounts payable $,000$25,000 Dividends payable 6,0004,000 Cammon stock 38,00032,000 Retained earnings 68,00049000 Total liabilities and shareholders’ equity $121,000$110,000\begin{array}{l}\begin{array} { | l | l | l | } \hline &\text { December } 31,2017 & \text { January } 1,2017 \\\hline\text { Cash } & \$ 6,000 & \$ 9,000 \\\text { Accounts receivable } & 8,000 & 12,000 \\\text { Merchandise irventory } & 29,000 & 18,000 \\\text { Prepaid rent } & 6,000 & 4,000 \\\text { Equipment } & 100,000 & 8000 \\\text { Accumulated depreciation } & ( 28,000 ) & ( 13,000 ) \\\text { Tatal assets } & \$ 121,000 & \$ 110,000 \\& & \\\text { Accounts payable } & \$ , 000 & \$ 25,000 \\\text { Dividends payable } & 6,000 & 4,000 \\\text { Cammon stock } & 38,000 & 32,000 \\\text { Retained earnings } & 68,000 & 49000 \\\text { Total liabilities and shareholders' equity } & \$ 121,000 & \$ 110,000\\\hline\end{array}\end{array}
Other information:
No equipment was sold or retired during 2017. Hampton's net income for 2017 was $33,000.
Calculate the amount of dividends paid during 2017.


Definitions:

Marginal Benefit

The additional satisfaction or utility gained from consuming or producing one extra unit of a good or service.

Economic Sense

The rationale or logic derived from economic principles or considerations, often related to making decisions based on cost-benefit analyses.

Tickets

Documents or electronic codes that grant the holder the right to enter an event, travel on a vehicle, or participate in an activity.

Economic Profits

Profits exceeding the opportunity costs of all resources used in production, including the cost of capital.

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