Problem 4. P14-1, Page 594 Dividend payment procedures, LG 1

a. List the debit & credit entry Debit Credit

Retained earnings (Dr.)

Dividends payable (Cr.)

b. Ex dividend date is ___________________________

c. Provide amounts. Cash___________

Dividends payable _____________

Retained earnings ______________

d. What effect, if any, will the dividend have on the firms total assets?

e. What effect, if any, will the dividend have on the firms stock price on the ex dividend date?

ercises All problems are available in MyFinanceLab Stephanie's Cafes, Inc., has declared a dividend of $1.30 per share for shareholders of record on Tuesday, May 2. The firm has 200,000 shares outstanding and will pa the dividend on May 24. How much cash will be needed to pay the dividend? When will the stock begin selling ex dividend? 1