Answered: When a corporation declares a cash…

When a corporation declares a cash dividend, the entry include a a. debit to net income b. credit to Additional Pain In Capital c. debit to Retained Earnings d. credit to Cash

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 4MC

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Question

When a corporation declares a cash dividend, the entry include a

a. debit to net income
b. credit to Additional Pain In Capital
c. debit to Retained Earnings
d. credit to Cash

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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