Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On January 2, Year 7, a company's board of directors declared a cash dividend of $450,000 to shareholders of record on February 9, Year 7,

On January 2, Year 7, a company's board of directors declared a cash dividend of $450,000 to shareholders of record on February 9, Year 7, payable on March 15, Year 7. The dividend is permissible under law in the company's state of incorporation. However, on January 2, Year 7 the retained earnings account has a credit balance of $300,000. What is the correct journal entry on January 2. Year 7? RETAINED EARNINGS 300,000 APIC 150,000 DIVIDENDS PAYABLE 450,000 RETAINED EARNINGS 300,000 APIC 150,000 CASH 450,000 RETAINED EARNINGS 450,000 DIVIDENDS PAYABLE 450,000 RETAINED EARNINGS 300,000 APIC 450,000 DIVIDENDS PAYABLE 450,000

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

Accounting 111

Authors: Carl S. Warren

1st Edition

1111065624, 978-1111065621

More Books

Students also viewed these Accounting questions

Question

Chain of Responsibility Simple code in c#

Answered: 1 week ago