Question 4 The account Dividends Payable is ________. debited on the date of declaration a liability...

Question

Question

Question 4 The account Dividends Payable is ________. debited on the date of declaration a liability...

Question 4

The account Dividends Payable is ________.

		debited on the date of declaration
		a liability on a balance sheet prepared between the date of declaration and the date of payment
		not a legal liability of the company
		credited on the date of payment
		a contra account found in the stockholders' equity section of the balance sheet

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Answer)

a liability on a balance sheet prepared between the date of declaration and the date of payment

Dividends payable are current liabilities and are recorded when the dividends are declared

Add a comment

Answer 2

Similar Homework Help Questions

Cash Dividends The date of declaration, date of record, and date of payment in connection with...

Cash Dividends The date of declaration, date of record, and date of payment in connection with a cash dividend of $1,200,000 on a corporation’s common stock are June 1, July 15, and August 14, respectively. Illustrate the effects on the accounts and financial statements for June 1. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. Statement of...
Cash dividends involve three events. On the date of declaration, the directors bind the company to...

Cash dividends involve three events. On the date of declaration, the directors bind the company to pay the dividend. A dividend declaration reduces retained earnings and creates a current liability. On the date of record recipients of the dividend are identified. On the date of payment, cash is paid to stockholders and the current liability is removed. Neither a stock dividend nor a stock split alters company value. However, the value of each share is less due to the distribution...
The premium on bonds payable account is a(n) 1. Revenue account 2. Adjunct liability account 3....

The premium on bonds payable account is a(n) 1. Revenue account 2. Adjunct liability account 3. Contra revenue account 4. Contra asset account . Equity account

9. Andrews, Inc. paid $45,000 to buy back 9,000 shares of its $1 par value common...

9. Andrews, Inc. paid $45,000 to buy back 9,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a a. credit to Paid-in Capital from Treasury Stock for $9,000. b. credit to Common Stock for $9,000. c. debit to Paid-in Capital from Treasury Stock for $45,000. d. debit to Retained Earnings for $45,000. 10. Restrictions of retained earnings a. are reported...
journal Cash dividends involve three events. On the date of declaration, the directors bind the company...

journal Cash dividends involve three events. On the date of declaration, the directors bind the company to pay the dividend. A dividend declaration reduces retained earnings and creates a current liability. On the date of record, recipients of the dividend are identified. On the date of payment, cash is paid to stockholders and the current liability is removed. Neither a stock dividend nor a stock split alters company value. However, the value of each share is less due to the...
Cash dividends involve three events. On the date of declaration, the directors bind the company to pay the dividen...

Cash dividends involve three events. On the date of declaration, the directors bind the company to pay the dividend. A dividend declaration reduces retained earnings and creates a current liability. On the date of record, recipients of the dividend are identified. On the date of payment, cash is paid to stockholders and the current liability is removed. Neither a stock dividend nor a stock split alters company value. However, the value of each share is less due to the distribution...

Question 1 of 4 -75 For each of the following accounts, identify what type of account...

Question 1 of 4 -75 For each of the following accounts, identify what type of account it is and state what its normal balance would be. Use the following for account type (Asset, Liability, Shareholders' equity, Revenue, Expense, and Dividends declared). If the account is a contra account, put a "Contra" in front of the account type. Type of Account Normal Balance 1. Cost of goods sold 2. Common shares Advertising expense 3. 4. Buildings 5. Interest payable 6. Dividends...
19. A liability for dividends is created on the firm's balance sheet on the: a. date...

19. A liability for dividends is created on the firm's balance sheet on the: a. date of record b. ex-dividends trading date c. cut-off date d. declaration date 30% of its sales in receivables that are collected in Zeus, Inc. has the remaining 70% ofsales result in receivables collected in Zeus' purchases are made and paid for in the month of s are projected as follows: August S14,000; Septembe Calculate the net cash flows for the month of October ·...
QUESTION 14 Identify the account to be debited and the account to be credited for each...

QUESTION 14 Identify the account to be debited and the account to be credited for each of the following transactions: 1 Purchased equipment for cash and a note payable. 2. Accepted a cash deposit from a customer for a service to be provided next month. 3. Provided services on account. 4. Purchased supplies on account. 5. Received payment form the client in 3. 6. Provided services to customer in 2 and collected cash for the remaining work done. 7. Owner...

2. In order to close the dividends account, the: a. Dividend account should be debited b....

2. In order to close the dividends account, the: a. Dividend account should be debited b. Dividend account should be credited c. Retained Earnings account should be credited d. Income Summary account should be debited 3. The income statement for the year 2018 of Fugazi Co. contains the following information: $6980 Revenues Expenses: Salaries and Wages Expense $3030 Rent Expense 1560 730 Advertising Expense 290 Supplies Expense 110 Insurance Expense 5720 Total expenses S 1260 Net income The entry to...

Question 4 The account Dividends Payable is ________. debited on the date of declaration a liability...

Homework Answers

Add Answer to:
Question 4 The account Dividends Payable is ________. debited on the date of declaration a liability...

Post as a guest

Earn Coins

Cash Dividends The date of declaration, date of record, and date of payment in connection with...

Cash dividends involve three events. On the date of declaration, the directors bind the company to...

The premium on bonds payable account is a(n) 1. Revenue account 2. Adjunct liability account 3....

9. Andrews, Inc. paid $45,000 to buy back 9,000 shares of its $1 par value common...

journal Cash dividends involve three events. On the date of declaration, the directors bind the company...

Cash dividends involve three events. On the date of declaration, the directors bind the company to pay the dividen...

Question 1 of 4 -75 For each of the following accounts, identify what type of account...

19. A liability for dividends is created on the firm's balance sheet on the: a. date...

QUESTION 14 Identify the account to be debited and the account to be credited for each...

2. In order to close the dividends account, the: a. Dividend account should be debited b....

Question 4 The account Dividends Payable is ________. debited on the date of declaration a liability...

Homework Answers

Add Answer to: Question 4 The account Dividends Payable is ________. debited on the date of declaration a liability...

Post as a guest

Earn Coins

Add Answer to:
Question 4 The account Dividends Payable is ________. debited on the date of declaration a liability...