Explanation Cash dividend: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends. Declaration date: The date on which the board of directors of a corporation announces officially to distribute the dividends to its shareholders is referred as declaration date. Payment date: The date on which the company makes payments for the cash dividends declared to its shareholders is referred as payment date. Prepare the journal entry to record the declaration of cash dividend on common stock. Date Account Title and Explanation Debit ($) Credit ($) February 20 Retained earnings (-SE) 229,440,000 Dividends payable (+L) 229,440,000 ( To record the declaration of cash dividends ) Table (1) Dividend is paid from retained earnings. Retained earnings are decreasing when dividend is declared. Hence, debit retained earnings with $229,440,000. Dividends payable is a liability. There is an increase in the liability. Hence, credit the dividends payable with $229,440,000. Prepare the journal entry to record the payment of cash dividend on common stock...

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Chapter 11, Problem 11.20E

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Prepare the journal entries to record the declaration and payment of dividends on common stock.

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Chapter 11, Problem 11.19E

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Ch. 11 - Prob. 1Q Ch. 11 - Prob. 2Q Ch. 11 - Explain each of the following terms: (a)...Ch. 11 - Differentiate between common stock and preferred...Ch. 11 - Explain the distinction between par value and...Ch. 11 - Define additional paid-in capital.Ch. 11 - Prob. 7Q Ch. 11 - Define treasury stock. Why do corporations acquire...Ch. 11 - How is treasury stock reported on the balance...Ch. 11 - What are the two basic requirements to support the...

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