On August 15, 2021, EasyMoney, Inc.’s Board of Directors meets and declares that EasyMoney will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock held by EasyMoney’s shareholders. The following are the facts related to this dividend: Dividend per Share .................... $1.25 Date of Declaration .................... August 15, 2021 Date of Record ........................... September 5, 2021 Date of Payment ........................ September 20, 2021 The following is a partial list of the accounts in EasyMoney, Inc.’s General Ledger. These are the only accounts you need for this problem. Cash Dividends Payable Retained Earnings As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the Beginning Balance in the Retained Earnings account is $625,000. Use the forms in the Excel workbook Chapter 10 b - Problem 10-1 Forms to complete this problem. Requirement 1 A. Record the entry that EasyMoney should make in the General Journal on August 15, 2021 to record the declaration of the dividend. B. After making and posting the August 15 entry, what are the Current Balances in the: Dividends Payable account? Retained Earnings account? Requirement 2 A. EasyMoney’s Accounting Cycle is one month long. EasyMoney’s Net Income for the month of August is $52,000. Prepare the Calculation of Retained Earnings as of August 31 for the Balance Sheet. B. What would be the amount of Dividends Payable on EasyMoney’s August 31 Balance Sheet? Requirement 3 A. Record the entry that EasyMoney should make in the General Journal on September 20, 2021 to record the payment of the dividend. B. After making and posting the September 20 entry, what is the Current Balance in the: Dividends Payable account?
Problem 10-1 Recording Dividends
On August 15, 2021, EasyMoney, Inc.’s Board of Directors meets and declares that EasyMoney
will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a
dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock
held by EasyMoney’s shareholders.
The following are the facts related to this dividend:
Dividend per Share .................... $1.25
Date of Declaration .................... August 15, 2021
Date of Record ........................... September 5, 2021
Date of Payment ........................ September 20, 2021
The following is a partial list of the accounts in EasyMoney, Inc.’s General Ledger. These are the
only accounts you need for this problem.
Cash
Dividends Payable
As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the
Beginning Balance in the Retained Earnings account is $625,000.
Use the forms in the Excel workbook Chapter 10 b - Problem 10-1 Forms to complete this
problem.
Requirement 1
A. Record the entry that EasyMoney should make in the General Journal on August 15, 2021
to record the declaration of the dividend.
B. After making and posting the August 15 entry, what are the Current Balances in the:
Dividends Payable account?
Retained Earnings account?
Requirement 2
A. EasyMoney’s Accounting Cycle is one month long. EasyMoney’s Net Income for the month
of August is $52,000. Prepare the Calculation of Retained Earnings as of August 31 for the
Balance Sheet.
B. What would be the amount of Dividends Payable on EasyMoney’s August 31 Balance
Sheet?
Requirement 3
A. Record the entry that EasyMoney should make in the General Journal on September 20,
2021 to record the payment of the dividend.
B. After making and posting the September 20 entry, what is the Current Balance in the:
Dividends Payable account?
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