What july financial statements will show an ending balance

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Bonita Corporation has the following shareholders equity on July 31, 2020:

Shareholders' equity Share capital $10 preferred shares, cumulative 10,000 shares authorized, 4600 shares issued $1970000

Common shares, 600,000 shares authorized, 10900 shares issued 294000

Total share capital 2264000

Retained earnings 498000

Total shareholders' equity $2762000

Problem 1: Assume that on June 15, 2021, Bonita paid the preferred dividend for the current year (there were no dividends in arrears) and paid a dividend of $2 to each common shareholder. The company earned $50000 in profit during 2021. The July 31, 2021 financial statements will show an ending balance in retained earnings of

Option 1: $548000.

Option 2: $498000.

Option 3: $480200.

Option 4: $426200.

Reference no: EM132943364

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