Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A cash dividend is __ - a conta asset account - a pro rate distribution of cash to stockholders - normal balance a credit -

A cash dividend is __

- a conta asset account

- a pro rate distribution of cash to stockholders

- normal balance a credit

- recorded as an expense to company

2. a stock dividend

-is a contra asset account

- a pro rate distribution to stockholders of corporations own stock

-reported on income statement

- increases owners equity

3. A stock split

- allocated to preferred stockholders only

-increases owners equity

-recorded debit to cash

-allocated to stockholders pro rate according to their % ownership

4. deficit is

- credit balance in retained earnings

- debit balance in retained earnings

- credit balance in APIC

- debit balance in common stock

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Operational Auditing For Management Control

Authors: Edward F Norbeck

1st Edition

0814451853, 978-0814451854

More Books

Students also viewed these Accounting questions

Question

What is human nature?

Answered: 1 week ago