On January 15, year 5, Rico Co. declared its annual cash dividend on common stock for the year ended January 31, Year 5. The dividend was paid on February 9, Year 5, to shareholders of record as of January 28, Year 5. On what date should Rico decrease retained earnings by the amount of the dividend? January 15, Year 5. January 31, Year 5. January 28, Year 5. February 9, Year 5. Bal Corp, declared a $25,000 cash dividend on May 8 to shareholders of record on May 23, payable on June 3. As a result of this cash dividend, working capital Was not affected Decreased on June 3. Decreased on May 23. D. Decreased on May 8. An entity declared a cash dividend on its common stock in December Year 1, payable in January year 2. Retained earnings Increase on the date of declaration. Not be affected on the date of declaration. Not be affected on the date of payment. Decrease on the date of payment. When an entity declares a cash dividend, retained earnings is decreased by the amount of the dividend on the date of Declaration Record Payment Declaration or record, whichever is earlier. An entity declared a cash dividend on its common stock on December 15, Year 1, payable on January 12, Year 2. How would this dividend affect equity on the following dates? At December 31, Year 3 and Year 4, Carr Corp. had outstanding 4,000 shares of $100 par value, 6% cumulative preferred stock and 20,000 shares of $10 par value common stock. At December 31, Year 3, dividends in arrears on the preferred stock were $12,000. Cash dividends declared in Year 4 total led $44,000. What amounts were payable on each class of stock? On December 1, Year 4, Nilo Corp, declared a property dividend to be distributed on December 31, Year 4, to shareholders of record on December 15, Year 4. On December 1, Year 4, the property to be transferred had a carrying amount of $60,000 and a fair value of $78,000. What is the effect of this property dividend on Nilo's Year 4 retained earnings, after all nominal. A. $0 B. $18,000 increase. C. $60,000 decrease D. $78,000 decrease. Instead of the usual cash dividend, Evie Corp. declared and distributed a property dividend from its overstocked merchandise. The excess of the merchandise's carrying amount over its fair value should be A. Ignored. B. Reported as a separately disclosed reduction of retained earnings. C. Reported as an extraordinary loss, net of income taxes. C. Reported as a reduction in operating income. A property dividend should be recorded in retained earnings at the property's A. Fair value at date of declaration. B. Fair value at date of issuance (payment). C. Carrying amount at date of declaration. D. Carrying amount at date of issuance. Munn Corp.'s records included the following equity accounts: In Munn's statement of equity, the number of issued and outstanding shares for each class of stock is
