Addison Corporation has 10 million shares of ordinary shares issued and outstanding. On June 1, the board

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Addison Corporation has 10 million shares of ordinary shares issued and outstanding. On June 1, the board of directors voted a 60 cents per share cash dividend to shareholders of record as of June 14, payable June 30.

Instructions

(a) Prepare the journal entry for each of the dates above, assuming the dividend represents a distribution of earnings.

(b) How would the entry differ if the dividend were a liquidating dividend?

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Intermediate Accounting IFRS Edition

ISBN: 9781118443965

2nd Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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