On August 15, 2021, EasyMoney, Inc.’s Board of Directors meets and declares that EasyMoney will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock held by EasyMoney’s shareholders. The following are the facts related to this dividend:  Dividend per Share .................... $1.25  Date of Declaration .................... August 15, 2021  Date of Record ........................... September 5, 2021  Date of Payment ........................ September 20, 2021 The following is a partial list of the accounts in EasyMoney, Inc.’s General Ledger. These are the only accounts you need for this problem.  Cash  Dividends Payable  Retained Earnings As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the Beginning Balance in the Retained Earnings account is $625,000. Use the forms in the Excel workbook Chapter 10 b - Problem 10-1 Forms to complete this problem. Requirement 1 A. Record the entry that EasyMoney should make in the General Journal on August 15, 2021 to record the declaration of the dividend. B. After making and posting the August 15 entry, what are the Current Balances in the:  Dividends Payable account?  Retained Earnings account? Requirement 2 A. EasyMoney’s Accounting Cycle is one month long. EasyMoney’s Net Income for the month of August is $52,000. Prepare the Calculation of Retained Earnings as of August 31 for the Balance Sheet. B. What would be the amount of Dividends Payable on EasyMoney’s August 31 Balance Sheet? Requirement 3 A. Record the entry that EasyMoney should make in the General Journal on September 20, 2021 to record the payment of the dividend. B. After making and posting the September 20 entry, what is the Current Balance in the:  Dividends Payable account?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Problem 10-1 Recording Dividends
On August 15, 2021, EasyMoney, Inc.’s Board of Directors meets and declares that EasyMoney
will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a
dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock
held by EasyMoney’s shareholders.
The following are the facts related to this dividend:
 Dividend per Share .................... $1.25
 Date of Declaration .................... August 15, 2021
 Date of Record ........................... September 5, 2021
 Date of Payment ........................ September 20, 2021
The following is a partial list of the accounts in EasyMoney, Inc.’s General Ledger. These are the
only accounts you need for this problem.
 Cash
 Dividends Payable
Retained Earnings
As of August 1, 2021, the Beginning Balance in the Dividends Payable account is $0 and the
Beginning Balance in the Retained Earnings account is $625,000.
Use the forms in the Excel workbook Chapter 10 b - Problem 10-1 Forms to complete this
problem.
Requirement 1
A. Record the entry that EasyMoney should make in the General Journal on August 15, 2021
to record the declaration of the dividend.
B. After making and posting the August 15 entry, what are the Current Balances in the:
 Dividends Payable account?
 Retained Earnings account?

Requirement 2
A. EasyMoney’s Accounting Cycle is one month long. EasyMoney’s Net Income for the month
of August is $52,000. Prepare the Calculation of Retained Earnings as of August 31 for the
Balance Sheet.
B. What would be the amount of Dividends Payable on EasyMoney’s August 31 Balance
Sheet?
Requirement 3
A. Record the entry that EasyMoney should make in the General Journal on September 20,
2021 to record the payment of the dividend.
B. After making and posting the September 20 entry, what is the Current Balance in the:
 Dividends Payable account?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps with 2 images

Blurred answer
Knowledge Booster
Accounting for stockholder's equity
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education