Chapter 11, Problem 11.6E

(a)

To determine

No-par common stock: The common stock that is issued at its fair market value is known as no-par common stock. Common stock are the ordinary shares that a corporation issues to the investors in order to raise funds. In return, the investors receives a share of profit from the profits earned by the corporation.

Cash dividends: 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.

To prepare: the journal entries for cash dividends for Corporation V.

(b)

To determine

To explain: the reporting of dividends and dividends payable in the financial statements prepared at December 31.