The entry to record common ebit to common stock distributable date of distributi
ID: 2408616 • Letter: T
Question
The entry to record common ebit to common stock distributable date of distribution includes: vidend's b. credit to cash c. debit to cash dividends payable d. no entry is made on the date of distribution. 8. Given the following events, which is the first to occur? a. date of record b. date of declaration c. date of payment d. the date of maturity for the dividencd Use the following information to answer Questions 9 and 10. The Able Corporation has 50,000 shares of $8 par value The Able Corporation has 50,000 shares of S8 par value common stock outstanding. The f common stock outstanding. The following transactions occurred during the year March 1 - Declared a 50 per share cash dividend to stockholders of record on March April 3 - Paid the cash dividend. 9. The entry to record the transaction of April 3 would be: a. Retained Earnings b. Cash Dividends Payable c. Cash Dividends Payable d. Retained Earnings 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 Cash Dividends Payable Retained Earnings d. Retained asr Dindends Declared t is the en a. Cash Dividends Payable 25,000 25,000 25,000 25,000 Cash b. Retained Earnings 25,000 Cash c. Cash Dividends Payable Returned Earnings d. No entryExplanation / Answer
7.
Correct answer is a. debit to common stock distributable
When the stock dividend is declared, the debit is made to retained earnings and credit is given to common stock distributable. On distribution, the credit goes to common stock distributable with corresponding credit to common stock.
8.
Correct answer is b. date of declaration
9.
Correct answer is c.
The cash dividends payable liability is created on date of declaration and debited on date of payment of dividends.
10.
Correct answer is d. No entry
Date of record is the date on which the number of shares is considered for payment of dividends. It doesnot involve any accounting entry.
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