Question: This exercise continues our accounting for Lydon s Yard Care Inc

This exercise continues our accounting for Lydon's Yard Care, Inc., from Chapter 9 . In this exercise, we will account for the declaration and issuance of a cash dividend by Lydon's Yard Care, Inc. On October 1 5, 2012, Lydon's Yard Care, Inc., declared a $9,000 cash dividend. The dividend was payable to all common shareholders of record on October 31 and was paid on November 15, 2012.

1. Journalize the entries related to the dividends.
2. What was the effect of the dividend on the following?
a Cash
b Retained Earnings
c Total Stockholders’ Equity

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