On December 1, the board of directors of Buy & Large, Inc., declared a cash dividend of $2 per share on the 300,000 common shares outstanding on record at December 31, payable January 10 of the following year. No other dividends were declared in either year. Show the effect on the accounting equation of the entry to be recorded on December 1: What happened to assets?
A. Debit Dividends 600,000
B. Debit Common Stock 600,000
C. Debit Dividends Payable 600,000
D. 0 No Effect
E. Debit Cash 600,000
F. Credit Common Stock 600,000
G. Credit Paid-in Capital in Excess of Par 600,000
H. Credit Cash 600,000
I. Credit Dividends Payable 600,000
J. Debit Dividends and Credit Dividends Payable 600,000
Ans: D. 0 No Effect
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A) is controlled by another corporation B) owns a controlling interest in another company C) is the first to begin operations in an industry D) has a trading investment in another company
Which of the following describes what a company should do to create a range forward contract in order to hedge foreign currency that will be received?
A. Buy a put and sell a call on the currency with the strike price of the put higher than that of the call B. Buy a put and sell a call on the currency with the strike price of the put lower than that of the call C. Buy a call and sell a put on the currency with the strike price of the put higher than that of the call D. Buy a call and sell a put on the currency with the strike price of the put lower than that of the call