11 - SB: Cash Dividends and Preferred Stock (7 - 11 mins)Assignment

On August 20, Max, Inc. issues 100 shares of $1 par value preferred stock for $3,000 cash. The entry to record this transaction would include a (debit/credit) ________ to the preferred stock account in the amount of $______-

Blank 1: credit Blank 2: 100

The board of directors of Chester, Inc. authorizes a $0.10 cash dividend to its 10,000 shares of common stock issued and outstanding. On the date of payment, a journal entry will debit which of the following accounts and for what amount? Multiple choice question. Common Dividend Payable for $1,000. Cash for $1,000. Common Dividend Expense for $1,000.

Common Dividend Payable for $1,000.

The board of directors of Anchor, Inc. authorizes a $0.50 cash dividend to its 100,000 shares of common stock issued and outstanding. On the date of payment, a journal entry will include which of the following accounts? (Check all that apply.) Multiple select question. Debit to Retained Earnings Credit to Cash Debit to Cash Credit to Retained Earnings Debit to Common Dividend Payable Credit to Common Dividend Payable

Credit to Cash Debit to Common Dividend Payable

Authorizing a cash dividend payment to investors requires three crucial dates. Identify which of the following is not a correct term to describe these dates. Multiple choice question. Date of record Date of authorization Date of payment Date of declaration

Date of authorization

When a corporation declares and pays a cash dividend, there are three notable important dates. Which date does not require a formal journal entry to the financial statements? Multiple choice question. Date of record Date of payment Date of declaration

Date of record

On March 15, the board of directors of Richmond, Inc. declare a cash dividend of $1 per share. On March 15, there are 1,000 shares of stock issued and outstanding. The journal entry required on the date of declaration will include a debit to the _________ account. Multiple choice question. Common Dividend Payable Retained Earnings Cash

Retained Earnings

A _________ is the distribution of cash to its owners. This is determined by the board of directors. Multiple choice question. common stock dividend withdrawal cash dividend

cash dividend

On June 1, the board of directors of Dylan, Inc. declare a cash dividend of $1 per share. On June 1, there are 1,000 shares of stock issued and outstanding. The journal entry required on the date of declaration will include a (debit/credit) __________ to the Common Dividend Payable account.

credit

On May 25, Tyler, Inc. issues 100 shares of $10 par value preferred stock for $5,000 cash. The entry to record this transaction would include a (debit/credit) ________ to the preferred stock account in the amount of _______. Multiple choice question. credit; $1,000 debit; $1,000 debit; $5,000 credit; $5,000

credit; $1,000

The board of directors authorizes a cash ______ or distribution of cash to its investors.

dividend

When the board of directors authorizes a cash dividend to investors, there are three important dates involved—the date of declaration, date of record, and date of ________

payment

True or false: A corporation has agreed to pay a $0.10 cash dividend on shares of common stock. On the date of record, no formal journal entry is required. True false question.

true