This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 11-33 of Chapter 11. On September

Question:

This exercise continues the Lawlor Lawn Service, Inc., situation from Exercise 11-33 of Chapter 11. On September 18, Lawlor Lawn Service declared a dividend of $2,000 to all common shareholders of record on September 23 to be paid on October 1.

Requirements

1. Journalize the entries related to the dividends.

2. On September 30, on what financial statement would the dividend balance appear? Why?

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...