a) On February 1, 2020 Adam Enterprises declared a dividend of $4,300 to common shareholders on record on February 4, 2020. Record the journal entry associated with this transaction. The company uses the retained earnings account to record dividends. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit Feb 1 Record dividend payable b) Record the journal entry when Adam Enterprises pays out the dividend on March 14, 2020. Date Account Title and Explanation Debit Credit Mar 14

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
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C5.3

a) On February 1, 2020 Adam Enterprises declared a dividend of $4,300 to
common shareholders on record on February 4, 2020. Record the journal
entry associated with this transaction. The company uses the retained
earnings account to record dividends.
Do not enter dollar signs or commas in the input boxes.
Date
Account Title and Explanation
Debit
Credit
Feb
1
Record dividend payable
b) Record the journal entry when Adam Enterprises pays out the dividend on
March 14, 2020.
Date
Account Title and Explanation
Debit
Credit
Mar
14
Record payment of dividends declared on Feb 1
Transcribed Image Text:a) On February 1, 2020 Adam Enterprises declared a dividend of $4,300 to common shareholders on record on February 4, 2020. Record the journal entry associated with this transaction. The company uses the retained earnings account to record dividends. Do not enter dollar signs or commas in the input boxes. Date Account Title and Explanation Debit Credit Feb 1 Record dividend payable b) Record the journal entry when Adam Enterprises pays out the dividend on March 14, 2020. Date Account Title and Explanation Debit Credit Mar 14 Record payment of dividends declared on Feb 1
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