P13–1 Dividend payment procedures At the quarterly dividend meeting, Wood Shoes declared a cash dividend of $1.10 per share for holders of record on Monday, July 10.

The firm has 300,000 shares of common stock outstanding and has set a payment date of July 31. Prior to the dividend declaration, the firm’s key accounts were as follows:

a. Show the entries after the meeting adjourned.

b. When is the ex dividend date?

c. What values would the key accounts have after the July 31 payment date?

d. What effect, if any, will the dividend have on the firm’s total assets?

e. Ignoring general market fluctuations, what effect, if any, will the dividend have on the firm’s stock price on the ex dividend date?

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Cash $500,000 Dividends payable $ 0 Retained earnings 2,500,000