Chapter 13, Problem P13.48BPGB

To determine

Stockholder’s Equity:

Stockholders Equity includes the paid up amount of all stocks (Common as well as preferred) issued and retained earnings balance. It represents the amount owed to the stockholders by the company. Stockholders Equity is the section of balance sheet’s equity part.

Cash dividend:

The Cash dividend is the amount of dividend paid to shareholders in cash. The Cash dividend is declared first and paid later. There are two journal entries made, one at the time of declaration of dividend and another at the time of payment.

1. Recording the Journal entries:

To indicate:

The journal entries for the given transactions

To determine

2. Stockholders Equity Section of the balance sheet:

To indicate: The Stockholders Equity Section of the balance sheet as on October 31, 2018