Hernandez Company has 560,000 shares of $10 par value common stock outstanding. During the year, Hernandez declared a 20% stock dividend when the market price of the stock was $30 per share. Four months later Hernandez declared a $.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by a. $ 1,988,000. b. $ 1,960,000. c. $ 2,016,000. d. $ 3,696,,000.

Hernandez Company has 560,000 shares of $10 par value common stock outstanding. During the year, Hernandez declared a 20% stock dividend when the market price of the stock was $30 per share. Four months later Hernandez declared a $.50 per share cash dividend. As a result of the dividends declared during the year, retained earnings decreased by a. $ 1,988,000. b. $ 1,960,000. c. $ 2,016,000. d. $ 3,696,,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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