Lupinski Distributors has 1,000,000 shares of common stock outstanding On January 11 of the current year, Lupinski declared a cash dividend of $0 20 per share, payable on March 9 to stockholders of record on February 12 Required (a) When did this dividend become a liability to Lupinski (b) Prepare ...

a The dividend became a liability on January 11 the date of de ...

Lupinski Distributors has 1,000,000 shares of common stock outstanding. On January 11 of the current year, Lupinski

Question:

Lupinski Distributors has 1,000,000 shares of outstanding. On January 11 of the current year, Lupinski declared a cash of $0.20 per share, payable on March 9 to stockholders of record on February 12.
Required:
(a) When did this become a liability to Lupinski?
(b) Prepare any journal entries required in Lupinski’s accounting records relating to this cash on the following dates in the current year:
(1) January 11
(2) February 12
(3) March 9
(4) December 31
(c) What group of individuals authorized the declaration of this What general types of information must public companies regulated by the SEC disclose in their annual reports regarding their policies? Why is this information important to potential investors?
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...