Concept #1: Dividend Declaration Date

Concept #2: Dividend Record Date

Concept #3: Dividend Payment Date

Concept #4: Dividend Payment Preferences

Practice: On December 12, Year 1, ABC Company declared a cash dividend of $250,000. The date of record was December 28, Year 1. The cash dividend was paid on January 5, Year 2. During which period will the dividend be included on the Statement of Retained Earnings?

Practice: ABC Company declared and paid a dividend of $150,000 during the current year. The amount of common stock ($0.50 par value) outstanding was 125,000. The amount of $6 preferred shares (par value of $100) outstanding was 1,000. What is the total dividend received by common stockholders?

Additional Problems
The declaration of cash dividends by Yellow Corporation’s board of directors would be reported on the Statement of Cash Flows as a(n): a. Cash outflow under the financing activities b. Cash inflow under the financing activities c. Cash outflow under the investing activities d. Activity that would not be reported on a Statement of Cash Flows.
On the date of declaration, which account is debited for the amount of the declared cash dividend? A) Retained Earnings B) Cash Dividend Expense C) Common Stock D) Contributed Capital
A company declares a cash dividend to be paid to its stockholders next month. The effect of the transaction is to : A) Decrease assets and liabilities. B) Increase assets and stockholders' equity. C) Decrease assets and stockholders' equity. D) Increase liabilities and decrease stockholders' equity.
Cainas Cookies declares a $10,000 dividend on 10/1/15 for all shareholders of record on 10/31/15, to be paid on 12/31/15.  Journal entries are required on:
Cainas Cookies declares a $10,000 dividend on 10/1/15 for all shareholders of record on 10/31/15, to be paid on 12/31/15.  The journal entry required on 10/1 is:
ABC Company files Articles of Incorporation on 1/1/15 and 1,000 shares are authorized.  ABC issues 700 shares on 2/1/15, but decides to buy back 200 shares of treasury stock on 6/1/15.  On 7/1/15 ABC decides to declare a dividend of $2 per share for all stockholders of record on 8/1/15 to be paid 9/30/15. How much is the dividend payable?
ABC Company issued 1,000 shares of $100, 5% preferred stock, par value $100 for $300,000 on 1/1/15, and 10,000 shares of Common stock, $1 par value for $30,000.  On 6/30/15, the company declared a cash dividend of $15,000.  What amount of the dividend will be paid to preferred stockholders?
Dividends paid to stockholders are recorded on the: a. income statement as an expense b. balance sheet as an asset c. retained earnings statement as an increase d. retained earnings statement as a decrease
Preferred stock which confers rights to prior periods' unpaid dividends even if they were not declared is called: a. Noncumulative preferred stock. b. Participating preferred stock. c. Convertible preferred stock. d. Cumulative preferred stock.
A Company has 4,000 shares of 5 percent, $100 par-value preferred stock and 50,000 shares of $2 par-value common stock outstanding. If the board of the directors decides to distribute dividends totaling $100,000, the common stockholders will receive a dividend of a. $1.00 a share b. $1.60 a share c. $2.00 a share d. $2.40 a share
G Company has $200,000 of 6% noncumulative, nonparticipating, preferred stock outstanding. G Company also has $600,000 of common stock outstanding. During its first year, the company paid cash dividends of $30,000. This dividend should be distributed as follows: a. $12,000 preferred; $18,000 common. b. $30,000 preferred; $0 common. c. $6,000 preferred; $24,000 common. d. $15,000 preferred; $15,000 common.
The annual per share dividend requirement of a 6%, $80 par value preferred stock that was issued for $85 is: a. $4.80 b. $5.10 c. $6.00 d. $8.00
Gerald had beginning total stockholders' equity of $160,000. During the year, total assets increased by $240,000 and total liabilities increased by $120,000. Gerald's net income was $180,000. No additional investments were made; however, dividends did occur during the year. How much were the dividends? a. $20,000. b. $60,000. c. $140,000. d. $220,000.
Which of the following correctly describes the recording of a dividend declaration by a company's board of directors? a. A debit to retained earnings (or dividends) and a credit to cash. b. A debit to contributed capital and a credit to dividends payable. c. A debit to cash and a credit to retained earnings (or dividends). d. A debit to retained earnings (or dividends) and a credit to dividends payable.
According to the comparative balance sheet, the balance of the Dividends Payable account at the beginning and end of the year was $54,000 and $52,500 respectively. The Retained Earnings Statement indicates that $80,000 in dividends was declared during the year. What amount of dividends was paid out during the year? a. $80,000 b. $54,000 c. $78,500 d. $81,500
Christian's Kitties has 100,000 shares of cumulative preferred stock outstanding which pays $4 per share. Christians Kitties has not paid dividends the past two years. How much will Christian's Kitties have to pay its cumulative preferred stockholders this current year?