Accounting Chapter 11

The board of directors of Bosco Company declared a cash dividend on November 15, 2012, to be paid on December 15, 2012, to stockholders owning the stock on November 30, 2012. Given these facts, the date of November 30, 2012, is referred to as what ?

The record date.

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

Cash Dividends

Treasury stock is what ?

A corporation's own stock, which has been reacquired and held for future use.

Paid-in capital in excess of stated value would appear on a balance sheet under what category ?

Additional paid-in capital.

The board of directors of Yancey Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2012. The dividend is to be paid on August 15, 2012, to stockholders of record on July 31, 2012. The correct entry to be recorded on July 15, 2012, will include a ... ?

Debit to Cash Dividends.

The board of directors of Benson Company declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2014. The dividend is to be paid on August 15, 2014, to stockholders of record on July 31, 2014. The correct entry to be recorded on August 15, 2014, will include a ....?

Debit to Dividends Payable

The date on which a cash dividend becomes a binding legal obligation is on what ?

Declaration date.

Dividends in arrears on cumulative preferred stock ... ?

Must be paid before common stockholders can receive a dividend.

On the dividend record date ..?

No entry is required.

A corporation records a dividend-related liability when ?

On the declaration date.

Regular dividends are declared out of .. ?

Retained earnings.