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: D Dividend per Share D Date of Declaration $1.25 August 15, 2021 September 5, 2021 September 20, 2021 D Date of Record D Date of Payment 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. D Cash D Dividends Payable D 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.

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Chapter1: Financial Statements And Business Decisions
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### EasyMoney, Inc.: Dividend Payment Announcement

**Date: August 15, 2021**

On August 15, 2021, EasyMoney, Inc.'s Board of Directors met and declared that the company 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 shareholders.

#### Dividend Information:

- **Dividend per Share:** $1.25
- **Date of Declaration:** August 15, 2021
- **Date of Record:** September 5, 2021
- **Date of Payment:** September 20, 2021

#### Relevant Accounts in EasyMoney, Inc.'s General Ledger:

- **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.
Transcribed Image Text:### EasyMoney, Inc.: Dividend Payment Announcement **Date: August 15, 2021** On August 15, 2021, EasyMoney, Inc.'s Board of Directors met and declared that the company 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 shareholders. #### Dividend Information: - **Dividend per Share:** $1.25 - **Date of Declaration:** August 15, 2021 - **Date of Record:** September 5, 2021 - **Date of Payment:** September 20, 2021 #### Relevant Accounts in EasyMoney, Inc.'s General Ledger: - **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.
## Recording Dividends

### Requirement 1
**August 15 Dividend Declaration Entry**

| Date       | Account Name | Debit | Credit |
|------------|---------------|-------|--------|
|            |               |       |        |

### B. After posting the above entry, the Current Balances in the Dividends Payable account and the Retained Earnings account:

| Current Balance in the Dividends Payable account as of Aug. 15 | Current Balance in the Retained Earnings account as of Aug. 15 |
|---------------------------------------------------------------|--------------------------------------------------------------|

### Requirement 2
#### A. Calculation of Retained Earnings as of August 31 for the Balance Sheet
**Calculation of Retained Earnings as of August 31 for the Balance Sheet**

|                            |                            |
|----------------------------|----------------------------|
|                            |                            |
|                            |                            |
|                            |                            |

#### B. Dividends Payable shown on EasyMoney's August 31 Balance Sheet
Transcribed Image Text:## Recording Dividends ### Requirement 1 **August 15 Dividend Declaration Entry** | Date | Account Name | Debit | Credit | |------------|---------------|-------|--------| | | | | | ### B. After posting the above entry, the Current Balances in the Dividends Payable account and the Retained Earnings account: | Current Balance in the Dividends Payable account as of Aug. 15 | Current Balance in the Retained Earnings account as of Aug. 15 | |---------------------------------------------------------------|--------------------------------------------------------------| ### Requirement 2 #### A. Calculation of Retained Earnings as of August 31 for the Balance Sheet **Calculation of Retained Earnings as of August 31 for the Balance Sheet** | | | |----------------------------|----------------------------| | | | | | | | | | #### B. Dividends Payable shown on EasyMoney's August 31 Balance Sheet
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