Lotoya Davis Corporation has 10 million shares of common stock issued and outstanding. On June 1, the
Question:
Lotoya Davis Corporation has 10 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 80 cents per share cash dividend to stockholders of record as of June 14, payable June 30.
Instructions
(a) Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings.
(b) How would the entry differ if the dividend were a liquidating dividend?
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Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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