Question
Tubbs Inc. has 25,000 shares of $1 par-value common stock outstanding. On March 1, the company declares a $1.25 per share dividend to stockholders on
Tubbs Inc. has 25,000 shares of $1 par-value common stock outstanding. On March 1, the company declares a $1.25 per share dividend to stockholders on record on March 15. On March 25, Tubbs Inc. paid the $1.25 per share dividend.
What will be the journal entry when Tubbs Inc. records the transaction on March 1?
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The declaration of the dividend on March 1 will result in a liability for the company until ...
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
13th edition
978-1-119-4110, 1119411483, 9781119411017, 978-1119411482
