Reference no: EM133019967
Question - Dividends paid by Hoogle Ltd from the year 20X1 to 20X3 are shown below. Interim dividends are announced in December and paid in March while final dividends are announced in June and paid in September. The financial year is ended at 30th June.
|
Year
|
Interim dividends
|
Final dividends
|
|
20X1
|
300,000
|
500,000
|
|
20X2
|
400,000
|
600,000
|
|
20X3
|
500,000
|
700,000
|
How much is paid for the dividends and how much retained earnings is reduced by dividends in the year 20X2?
a. Paid dividends $400,000, reduced retained earnings $1,000,000
b. Paid dividends $900,000, reduced retained earnings $1,000,000
c. Paid dividends $1,000,000, reduced retained earnings $400,000
d. Paid dividends $400,000, reduced retained earnings $400,000