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13 Cards in this Set
- Front
- Back
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Date of Declaration
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1) the date that the Board of Directors authorizes for the payment of a dividend
2) dividend becomes an enforceable liability |
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Journal Entry:
Date of Declaration of Cash Dividend |
Dr) Retained Earnings
Cr) Dividends Payable |
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Date of Record
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1) establishes who will recieve the dividend
2) no journal entry |
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Journal Entry:
Date of Record of Cash Dividend |
No Journal Entry
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Date of Payment
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1) dividend checks are mailed out
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Journal Entry:
Date of Payment of Cash Dividend |
Dr) Dividends Payable
Cr) Cash |
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What 3 things are needed to legally declare and pay a cash dividend?
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1) Votes
2) Retained Earnings 3) Cash |
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Journal Entry:
Date of Declaration of Stock Dividend |
Dr) Retained Earnings
Cr) Common/Prefferred Stock Dividend Distributable Cr) Paid in Capital |
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Journal Entry:
Date of Record of Stock Dividend |
No Journal Entry
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Date of Distribution
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1) stocks are issued as dividends
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Journal Entry:
Date of Distribution of Stock Dividend |
Dr) Common Stock Dividend Distributable
Cr) Common Stock |
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What is the purpose of a stock split?
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-to bring the selling price of the stock to within the primary trading range
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Journal Entry:
2 for 1 Stock Split |
No Journal Entry
-adjust the number of shares outstanding -adjust the par value |
