10 - SOLUTION Problem 10-1

10 - SOLUTION Problem 10-1 - After posting the above entry...

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Problem 10-1 SOLUTION Requirement 1 – August 15 Dividend declaration entry Date Account Name Debit Credit 8/15/11 Dividends 50,000 Dividends Payable 50,000 Record the declaration of the dividend After posting the above entry the account balances in Dividends and Dividends Payable. Balance in the Dividends account as of Aug. 15 Balance in the Dividends Payable account as of Aug. 15 $50,000 $50,000 Requirement 2 – August 31 Dividends account closing entry Date Account Name Debit Credit 8/31/11 Retained Earnings 50,000 Dividends 50,000 Closing entry for the Dividends account
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Unformatted text preview: After posting the above entry the account balances in Dividends and Dividends Payable. Balance in the Dividends account as of Aug. 31 Balance in the Dividends Payable account as of Aug. 31 $0 $50,000 Requirement 3 September 20 Dividend payment entry Date Account Name Debit Credit 9/20/11 Dividends Payable 50,000 Cash 50,000 Payment of the dividend After posting the above entry the account balance in Dividends Payable. Balance in the Dividends Payable account as of Sept. 20 $0...
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This note was uploaded on 12/17/2010 for the course ACC 311 taught by Professor Charrier during the Fall '08 term at University of Texas at Austin.

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