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Unformatted text preview: stock Market value whatever value that is on the market P.515 Treasury stock method issued stock that has subsequently been reacquired by the corporation p.517 mutiply choice questions retained earnings debit(-) credit(+) loss income P.518 cash dividends When the boards of directors declare dividends, the company has a liability Accounting for cash dividends 1. declaration date Journal Entry debit divdends (preferred first then common stock) 10000 credit divdends payable 10000 2. date of record no journal entry 3. payment date journal entry debit dividends payable 10000 credit cash 10000 Closing dividends to retained earnings Debit retained earnings Credit both dividends...
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- Summer '11