Question: When a corporation distributes a dividend, the most common form of distribution is a cash dividend. Retained Earnings account will be directly increased with a

When a corporation distributes a dividend, the

most common form of distribution is a cash dividend. Retained Earnings account will be directly increased with a debit. Dividends account will be increased with a credit. Dividends account will be decreased with a debit.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

When a corporation distributes a dividend, the most common form of distribution is a cash dividend. Retained Earnings account will be directly increased with a debit. Dividends account will be...

When a corporation distributes a dividend the most common form of distribution is a cash dividend. Dividends account will be decreased with a debit. Dividends account will be increased with a credit....

Dividends and Common shares 1. In 2020, Pauline and some of her friends invested money to start a company named LADIEZ Corporation. The following transactions oc- curred during 2020. Jan 1 The...

Problem 2: Equity DYE Co.'s Shareholders' Equity section appears below: Shareholders' Equity at November 30, 2010 Preferred shares $154,000 (14,000 shares outstanding, $ 0.65 dividend, cumulative,...

1. In 2020, Pauline and some of her friends invested money to start a company named LADIEZ Corporation. The following transactions oc- curred during 2020. Jan 1 The corporate charter authorized...

Take me to the text In 2020, Elizabeth and some of her friends invested money to start a company named GIRLZ Corporation. The following transactions occurred during 2020. Jan 1 The corporate charter...

FRIENDZ Corporation generated a $139,000 (after income tax) during the year. The company uses the retained earnings account to record dividends. a) Prepare the journal entries to record the above...

Take me to the text in 2020, Elzabeth and some of her friends invested money to start a company named FRIENDZ Corporation. The following transactions occurred during 2020 Jan 1 The corporate charter...

Two identical fermions with spin 1/2 are placed in 1-dir. box of length L. Eech particle has mass mn. The energy of the system is 13 11h. What is the space part of the wave for

Dempsey Ltd was incorporated on 01 March 2018 with an authorised share capital of N$500 000 which consist of: 2 000 000 ordinary no par value shares. 100 000 6% convertible no par value preference...

Which of the following is an advantage of bonds? All of the choices are correct. Tax incentive for companles that issue them. Portfolio diversification. Fixed income lowers overall risk of the...

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.