Lotoya Davis Corporation has 10 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 80 cents per share cash dividend to stockholders of record as of June 14, payable June 30. Instructions a. Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings. b. How would the entry differ if the dividend were a liquidating dividend?
Lotoya Davis Corporation has 10 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 80 cents per share cash dividend to stockholders of record as of June 14, payable June 30. Instructions a. Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings. b. How would the entry differ if the dividend were a liquidating dividend?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lotoya Davis Corporation has 10 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 80 cents per share cash dividend to stockholders of record as of June 14, payable June 30.
Instructions
a. Prepare the
b. How would the entry differ if the dividend were a liquidating dividend?
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