Question

Brief Exercise 8-16 Riverbed Corp has 8,400 shares of common stock outstanding. It declares a $5 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. (If a transaction causes a decrease in Assets, Liabilities 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.) Assets Liabilities Paid-in-Capital Stockholders' Equity Retained Earnings Revenue - Expense - Cash - Dividend Payable + Dividend Nov. 1 Dec. 31 Click if you would like to Show Work for this question: Open Show. Work

Answer 1

dividend amount = 8,400 * $5 = $42,000 assets liabilities stockholders' equity paid in capital retained earnings + revenue - expense - cash = dividend payable + $ 42,000 -$ 42,000 dividend $ 42,000 01-Nov 31-Dec -$ 42,000

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