This exercise continues our accounting for Lydon 's Yard Care, Inc , from Chapter 9 In this exercise, we will account for the declaration and issuance of a cash dividend by Lydon 's Yard Care, Inc On October 1 5, 2012, Lydon 's Yard Care, Inc , declared a $9,000 cash dividend The dividend was payab...

Journal DATE ACCOUNTS POST REF Dr Cr Oct 15 Retained earnings 900 ...

This exercise continues our accounting for Lydon's Yard Care, Inc., from Chapter 9 . In this exercise,

Question:

This exercise continues our accounting for Lydon's Yard Care, Inc., from Chapter 9 . In this exercise, we will account for the declaration and issuance of a cash by Lydon's Yard Care, Inc. On October 1 5, 2012, Lydon's Yard Care, Inc., declared a $9,000 cash The was payable to all common shareholders of record on October 31 and was paid on November 15, 2012.

Requirements
1. Journalize the entries related to the dividends.
2. What was the effect of the on the following?
a Cash
b Retained Earnings
c Total Stockholders’ Equity

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...