On the date of payment when the cash is sent out to the stockholders

On the date of payment when the cash is sent out to the stockholders

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On the  date of payment  when the cash is sent out to the stockholders, the dividends payable  account is decreased (debited) and the cash account is decreased (credited).  General Journal Date Account Title and Description Ref. Debit Credit 20X1 June 30 Dividend Payable 50,000 Cash 50,000 Pay dividend Once declared and paid, a cash dividend decreases total stockholders' equity and decreases total 
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Unformatted text preview: assets. Dividends are not reported on the income statement. They would be found in a statement of retained earnings or statement of stockholders' equity once declared and in a statement of cash flows when paid....
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