Chapter 12, Problem 5DQ

To determine

A.

Dividends

The distribution of earnings of a corporation to its stockholders is known as dividends. Dividends can be paid either in cash or in shares of stock. It passes through the process of declaration, recording and payment and, accordingly various journal entries are passed to record the transactions as different stages.

To Locate: Where a declared cash dividend but unpaid will be reported on the balance sheet.

B.

To determine

To Locate: Where a declared but unissued stock dividend is reported on the balance sheet.