Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As of Oct. 31, 2019, Landry Company has 20,000 common stock shares issued and outstanding, and retained earnings of $275,000. Landry declares a $3

image text in transcribed

As of Oct. 31, 2019, Landry Company has 20,000 common stock shares issued and outstanding, and retained earnings of $275,000. Landry declares a $3 per share cash dividend on Dec. 28, 2019 to be paid on Feb. 15, 2020 to shareholders of record as of Jan. 20, 2020. For the journal entry in part a, use the following account abbreviations: CASH = cash, DIV = dividends, RE = retained earnings, DIVPAY = dividends payable, CS = Common stock. a. Show the journal entry to record the dividend declaration on Dec. 28, 2019: Dr. Cr. b. Assuming Landry reported net income of $65,000 for the fiscal quarter ended Dec. 31, 2019, what is Landry's balance of retained earnings on December 31, 2019?

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

Step: 3

blur-text-image

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

Horngrens Financial And Managerial Accounting The Financial Chapters

Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura

6th Edition

978-0134486840, 134486838, 134486854, 134486846, 9780134486833, 978-0134486857

More Books

Students also viewed these Accounting questions

Question

What type of a rating scale should be used?

Answered: 1 week ago

Question

Who should be the rater?

Answered: 1 week ago