Addison Corporation has 10 million shares of ordinary shares issued and outstanding. On June 1, the board
Question:
Addison Corporation has 10 million shares of ordinary shares issued and outstanding. On June 1, the board of directors voted a 60 cents per share cash dividend to shareholders 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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Step by Step Answer:
a Journal entries June 1 Retained Earnings 6000000 Dividend...View the full answer
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Related Book For 
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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