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 January 10. What happened to SE?

A. (600,000) Treasury Stock
B. (600,000) Paid-in Capital in Excess of Par
C. 600,000 Dividends Payable
D. 600,000 Common Stock
E. (600,000) Common Stock
F. (600,000) Dividends
G. 600,000 Cash
H. (600,000) Cash
I. 0 No Effect
J. (600,000) Dividends Payable

Ans: I. 0 No Effect

Business

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