easy · Financial Accounting accounting-cycle-financial-statements
On November 1, a board declares a $1.50 per share dividend on 100,000 shares, payable on December 15.
What is the impact on the Balance Sheet on the declaration date (November 1)?
- No impact at all until the future record date is reached.
- Decrease Cash by $150,000 and decrease Retained Earnings by $150,000 on this date.
- Decrease Retained Earnings by $150,000 and increase Dividends Payable by $150,000.
- Decrease Retained Earnings by $150,000 and also decrease Common Stock by $150,000.
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