Cash dividends : This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company. Dates in connection with the dividend declaration : Date of declaration : The date on which board of directors of a corporation, formally approve the payment of dividends is referred to as date of declaration. This creates a liability for the corporation to pay the dividends. Date of record : The date on which a corporation ensures that stockholders with ownership of shares, as on the date of record, are entitled to receive the dividends, is referred to as date of record. All the stockholders who own the shares before the date of record would be eligible to receive the dividends. Date of payment : The date on which the corporation pays the dividends declared on date of declaration to the stockholders as per date of record, is referred to as date of payment. This closes the liability created on the date of declaration. Journal entry : Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically. Debit and credit rules: Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts. Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts. To journalize : The transactions occurred on October 1 (date of declaration), November 7 (date of record), and December 15 (date of payment)

Question

Can you solve this general accounting problem using appropriate accounting principles?

Answer 1

Question

Chapter 12, Problem 12.3BE

To determine

Cash dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

Dates in connection with the dividend declaration:

Date of declaration: The date on which board of directors of a corporation, formally approve the payment of dividends is referred to as date of declaration. This creates a liability for the corporation to pay the dividends.

Date of record: The date on which a corporation ensures that stockholders with ownership of shares, as on the date of record, are entitled to receive the dividends, is referred to as date of record. All the stockholders who own the shares before the date of record would be eligible to receive the dividends.

Date of payment: The date on which the corporation pays the dividends declared on date of declaration to the stockholders as per date of record, is referred to as date of payment. This closes the liability created on the date of declaration.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The transactions occurred on October 1 (date of declaration), November 7 (date of record), and December 15 (date of payment)

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Answer 2

Question

Chapter 12, Problem 12.3BE

To determine

Cash dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

Dates in connection with the dividend declaration:

Date of declaration: The date on which board of directors of a corporation, formally approve the payment of dividends is referred to as date of declaration. This creates a liability for the corporation to pay the dividends.

Date of record: The date on which a corporation ensures that stockholders with ownership of shares, as on the date of record, are entitled to receive the dividends, is referred to as date of record. All the stockholders who own the shares before the date of record would be eligible to receive the dividends.

Date of payment: The date on which the corporation pays the dividends declared on date of declaration to the stockholders as per date of record, is referred to as date of payment. This closes the liability created on the date of declaration.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The transactions occurred on October 1 (date of declaration), November 7 (date of record), and December 15 (date of payment)

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Answer 3

Question

Chapter 12, Problem 12.3BE

To determine

Cash dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

Dates in connection with the dividend declaration:

Date of declaration: The date on which board of directors of a corporation, formally approve the payment of dividends is referred to as date of declaration. This creates a liability for the corporation to pay the dividends.

Date of record: The date on which a corporation ensures that stockholders with ownership of shares, as on the date of record, are entitled to receive the dividends, is referred to as date of record. All the stockholders who own the shares before the date of record would be eligible to receive the dividends.

Date of payment: The date on which the corporation pays the dividends declared on date of declaration to the stockholders as per date of record, is referred to as date of payment. This closes the liability created on the date of declaration.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The transactions occurred on October 1 (date of declaration), November 7 (date of record), and December 15 (date of payment)

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Answer 4

Question

Chapter 12, Problem 12.3BE

To determine

Cash dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

Dates in connection with the dividend declaration:

Date of declaration: The date on which board of directors of a corporation, formally approve the payment of dividends is referred to as date of declaration. This creates a liability for the corporation to pay the dividends.

Date of record: The date on which a corporation ensures that stockholders with ownership of shares, as on the date of record, are entitled to receive the dividends, is referred to as date of record. All the stockholders who own the shares before the date of record would be eligible to receive the dividends.

Date of payment: The date on which the corporation pays the dividends declared on date of declaration to the stockholders as per date of record, is referred to as date of payment. This closes the liability created on the date of declaration.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The transactions occurred on October 1 (date of declaration), November 7 (date of record), and December 15 (date of payment)

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Answer 5

Chapter 12, Problem 12.3BE

To determine

Cash dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

Dates in connection with the dividend declaration:

Date of declaration: The date on which board of directors of a corporation, formally approve the payment of dividends is referred to as date of declaration. This creates a liability for the corporation to pay the dividends.

Date of record: The date on which a corporation ensures that stockholders with ownership of shares, as on the date of record, are entitled to receive the dividends, is referred to as date of record. All the stockholders who own the shares before the date of record would be eligible to receive the dividends.

Date of payment: The date on which the corporation pays the dividends declared on date of declaration to the stockholders as per date of record, is referred to as date of payment. This closes the liability created on the date of declaration.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The transactions occurred on October 1 (date of declaration), November 7 (date of record), and December 15 (date of payment)

Answer 6

Chapter 12, Problem 12.3BE

To determine

Cash dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

Dates in connection with the dividend declaration:

Date of declaration: The date on which board of directors of a corporation, formally approve the payment of dividends is referred to as date of declaration. This creates a liability for the corporation to pay the dividends.

Date of record: The date on which a corporation ensures that stockholders with ownership of shares, as on the date of record, are entitled to receive the dividends, is referred to as date of record. All the stockholders who own the shares before the date of record would be eligible to receive the dividends.

Date of payment: The date on which the corporation pays the dividends declared on date of declaration to the stockholders as per date of record, is referred to as date of payment. This closes the liability created on the date of declaration.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The transactions occurred on October 1 (date of declaration), November 7 (date of record), and December 15 (date of payment)

Answer 7

Chapter 12, Problem 12.3BE

To determine

Cash dividends: This is the amount of cash distributed to stockholders by a company out its earnings, according to their proportion of shares invested in the company.

Dates in connection with the dividend declaration:

Date of declaration: The date on which board of directors of a corporation, formally approve the payment of dividends is referred to as date of declaration. This creates a liability for the corporation to pay the dividends.

Date of record: The date on which a corporation ensures that stockholders with ownership of shares, as on the date of record, are entitled to receive the dividends, is referred to as date of record. All the stockholders who own the shares before the date of record would be eligible to receive the dividends.

Date of payment: The date on which the corporation pays the dividends declared on date of declaration to the stockholders as per date of record, is referred to as date of payment. This closes the liability created on the date of declaration.

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.

Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

To journalize: The transactions occurred on October 1 (date of declaration), November 7 (date of record), and December 15 (date of payment)

Answer 8

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Answer 19

Ch. 12 - Of two corporations organized at approximately the...Ch. 12 - A stockbroker advises a client to buy preferred...Ch. 12 - A corporation with both preferred stock and common...Ch. 12 - An owner of 2,500 shares of Simmons Company common...Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - A corporation reacquires 60,000 shares of its own...Ch. 12 - The treasury stock in Discussion Question 7 is...Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Solution Summary: The author explains that cash dividends are distributed to stockholders by a company out its earnings according to their proportion of shares invested in the company.

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Chapter 12 Solutions