Van Etten Company declared and paid a cash dividend of $3 25 per share on its $1 par common stock Van Etten has 100,000 shares of common stock outstanding and total paid in capital from common stock of $800,000 As part of the dividend announcement, Van Etten stated that retained earnings served as ...

Retained Earnings 50000 Pai ...

Van Etten Company declared and paid a cash dividend of $3.25 per share on its $1 par

Question:

Van Etten Company declared and paid a cash of $3.25 per share on its $1 par . Van Etten has 100,000 shares of outstanding and total paid-in capital from of $800,000. As part of the announcement, Van Etten stated that retained earnings served as the basis for only $0.50 per share of the investors should consider the remainder to be a return of investment. Prepare the journal entries necessary on Van Etten’s books to record the declaration and of this Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...