Question

Your answer is partially correct. Try again. Ayayai Corp. has 9,300 shares of common steck outstanding. It declares a $2 per share cash dividend on November 1 to stockholders of recerd on December 1. The dividend is paid on December 31 Prepare a tabular summary to record the deciaration and payment of the cash dividend. (If a transaction causes a decrease in Assets, Labilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) Liabilities Stockholders' Equity Assets Retained Earnings Paid-in-Capital Dividend Payable Revenue Expense Dividend Cash 9,300 9,300 9,300 Nov. 1 9,300 9,300 18,600 Dec. 31

Answer 1

Number of shares outstanding = 9,300

Dividend per share = $2

Total dividend = Number of shares outstanding x Dividend per share

= 9,300 x 2

= $18,600

	Assets	=	Liabilities	+	Stockholders' Equity
					Paid in capital		Retained earnings
	Cash	=	Dividend payable	+		+	Revenue	-	Expense	-	Dividend
Nov. 1			18,600								18,600
Dec. 31	-18,600		-18,600

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