When a dividend is declared and paid by a corporation, a debit is made to retained earnings. Explain why.
Answer to relevant QuestionsA company sells merchandise on credit to a customer for $1,000. What is the impact on the balance sheets of the selling company and the customer? Explain.How should an entity determine the number of accounts it should keep in its general ledger? Explain the difference between transactional journal entries and adjusting journal entries.What does "posting" journal entries to the general ledger mean? Why are journal entries posted to the general ledger? Set up an accounting equation spreadsheet and enter each of the following economic events into it.a. A car is purchased for $25,000 cash.b. A car is purchased for $15,000 cash and $10,000 financed through the dealer.c. A ...
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