medium · Financial Accounting stockholders-equity
On the date of declaration of a $1.00 per share cash dividend for 100,000 shares, which accounts are affected?
- Debit Retained Earnings $100,000; Credit Dividends Payable $100,000.
- Debit Dividends Expense $100,000; Credit Dividends Payable $100,000.
- No journal entry is made until the 'Date of Record'.
- Debit Retained Earnings $100,000; Credit Cash $100,000.
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