Question
Exercise 11-10A Effect of cash dividends on financial statements LO 11-4 On May 1, 2016, Love Corporation declared a $50,000 cash dividend to be paid
Exercise 11-10A Effect of cash dividends on financial statements LO 11-4
| On May 1, 2016, Love Corporation declared a $50,000 cash dividend to be paid on May 31 to shareholders of record on May 15. |
| Required |
| a. | Record the events occurring on May 1, May 15, and May 31 in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). |
| b. | Prepare journal entries for all events associated with the dividend. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
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