Exercise 11-14A Effect of cash dividends on financial statements LO 11-6

On May 1, Year 1, Love Corporation declared a $76,600 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. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that an element was not affected by the event. (Amounts to be deducted should be indicated with minus sign.)

Date	Assets	Liabilities	Common Stock	Retained earning	Revenue	Expense	Netincome	cash	flow
May1
May15
May31