Question

Ayayal Corp. has 7,100 shares of common stock outstanding, it declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare a tabular summary to record the declaration and payment of the cash dividend. Of a transaction causes a decrease in Assets, Liabilities or Stockholders Equity, place a negative sign for parentheses) in front of the amount entered for the particular Asset, Lobility or Equity item that was reduced.) Assets Liabilities Stockholders' Equity Paid-in-Capital Retained Earnings Cash - Dividend Payable + Revenue Expense Nov. 1 $ Dec. 31

Answer 1

Assets

=

Liabilities

+

Shareholders Equity

Paid In Capital

Revenue

Retained Earning

Nov-01

=

$         7,100

$                   -7,100

Decreased retained earning and increase dividend payable (current liabilities)

Dec-31

$         -7,100

=

$       -7,100

Decreased cash , decrease current liabilities