Download presentation
Presentation is loading. Please wait.
Published byMercy Amy O’Brien’ Modified over 6 years ago
1
STOCKHOLDERS’ EQUITY ACCOUNTS USED BY A CORPORATION
Lesson 25-1, page 636
2
DECLARING A DIVIDEND
December 15. Winning Edge’s board of directors declared a quarterly dividend of $1.00 per share; capital stock issued is 10,000 shares; total dividend, $10, Date of payment is January 15. Memorandum No. 189. Accounts Affected Dividends Dividends Payable Classification Stockholder’s Equity Liability Change Increased Entered Debit side Credit side 4/15 Paid 10, /15 Decl. 10,000.00 7/15 Paid 10, /15 Decl. 10,000.00 10/15 Paid 10, /15 Decl. 10,000.00 Dividends Payable 3/15 Decl. 10,000.00 6/15 Decl. 10,000.00 9/15 Decl. 10,000.00 Dividends normal balance normal balance 12/15 Decl. 10,000.00 12/15 Decl. 10,000.00 Lesson 25-1, page 637
3
DECLARING A DIVIDEND 1 2 1. Debit Dividends
2. Credit Dividends Payable Lesson 25-1, page 637
4
PAYING A DIVIDEND January 15. Paid cash for quarterly dividend declared December 15, $10, Check No. 879. Accounts Affected Dividends Payable Cash Classification Liability Asset Change Decreased Entered Debit side Credit side 4/15 Paid 10, /15 Decl. 10,000.00 7/15 Paid 10, /15 Decl. 10,000.00 10/15 Paid 10, /15 Decl. 10,000.00 12/15 Decl. 10,000.00 Cash Dividends Payable normal balance normal balance 1/15 Paid 10,000.00 1/15 Paid 10,000.00 Lesson 25-1, page 638
5
PAYING A DIVIDEND 1 2 1. Debit Dividends Payable 2. Credit Cash
Lesson 25-1, page 638
6
TERMS REVIEW stockholder retained earnings dividends
board of directors declaring a dividend Lesson 25-1, page 639
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.