Question
Before preparing financial statements for the current year, the chief accountant for Wildhorse Ltd. provided the following information regarding the accounting for dividends and stock
Before preparing financial statements for the current year, the chief accountant for Wildhorse Ltd. provided the following information regarding the accounting for dividends and stock splits:
Before preparing financial statements for the current year, the chief accountant for Cullumber Ltd. provided the following information regarding the accounting for dividends and stock splits:
Determine if each of the above transactions was recorded correctly and, if not, prepare the correct entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
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Determine if each of the above transactions was recorded correctly and, if not, prepare the correct entry. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Date | Account Titles and Explanation | Debit | Credit |
---|---|---|---|
(1) Dec. 31 | enter an account title to record payment of cash dividend on December 31 | enter a debit amount | enter a credit amount |
enter an account title to record payment of cash dividend on December 31 | enter a debit amount | enter a credit amount | |
(To record payment of cash dividend.) | |||
(2) Dec. 31 | enter an account title to record declaration of stock dividend on December 31 | enter a debit amount | enter a credit amount |
enter an account title to record declaration of stock dividend on December 31 | enter a debit amount | enter a credit amount | |
(To record declaration of stock dividend.) | |||
(3) Dec. 31 | enter an account title for the journal entry on December 31 | enter a debit amount | enter a credit amount |
enter an account title for the journal entry on December 31 |
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