Explanation 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. Date of record: The date on which the company verifies the ownership of shares of the shareholders entitled to receive the dividends declared, is referred as date of record. No entry is recorded on this date. Payment date: The date on which the company makes payments for the cash dividends declared to its shareholders is referred as payment date. Justification for incorrect answer: Option a: 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. On the date of declaration, dividend/ retained earnings account will be debited and liabilities (dividend payable) will be created by credit entry...

Connect Access Card for Financial Accounting

9th Edition

ISBN: 9781259738678

Author: Robert Libby, Patricia Libby, Frank Hodge Ch

Publisher: McGraw-Hill Education

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Chapter 11, Problem 6MCQ

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Identify the date on which journal entry is not required to record.

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Chapter 11, Problem 5MCQ

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Chapter 11 Solutions

Connect Access Card for Financial Accounting

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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Identify the date on which journal entry is not required to record.

Solution Summary: The author identifies the date on which journal entry is not required to record. Option b is the correct answer.

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Identify the date on which journal entry is not required to record.

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