Paudel Limited has been in the retail business for many years and has reached its goal in securing a strong financial position. The board of
Paudel Limited has been in the retail business for many years and has reached its goal in securing a strong financial position. The board of directors decided that it is time to adopt a policy of paying quarterly dividends. No dividends had been declared since incorporation. A $0.50 per share dividend was declared on Paudel's 100,000 outstanding common shares.
(a) Does this decision require a change in accounting policy?
(b) What journal entry(ies), if any, should Paudel record at the date of declaration of the dividend?
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Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian Edition
1119497043, 978-1119497042
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