Jounalize these transactions:
Declared a 5% common stock dividend when the market value of the stock was $6.00 per share.
Declared total cash dividends of $6,000.
The dividend is declared by the board of directors. When the declaration of the dividend is done, then it becomes the liabilities of the company and the dividend is paid from the retained earnings.
Answer and Explanation:
|Date||Particular||Debit $||Credit $|
|Retained Earning a/c Dr||6,000|
|To, Dividend payable a/c||6,000|
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from Finance 101: Principles of FinanceChapter 16 / Lesson 1