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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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Chapter
Section
BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

a. Where should a declared but unpaid cash dividend be reported on the balance sheet?

b. Where should a declared but unissued stock dividend be reported on the balance sheet?

a.

To determine

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.

Explanation

Since on the date when cash dividend is declared, “Cash Dividend Payable” account is credited for the amount of c...

b.

To determine

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

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