Cash Dividend

These are three events in dividend distribution, except

• Recording date

• Payment date

• Declaration date

• Announcement date

Dividend is taken from this account

• Share Capital-Ordinary

• Treasury Shares

• Share Capital-Preferences

• Retained Earnings

In this date, the firm does not need to journalize the event

• Recording date

• Declaration date

• Announcement date

• Payment date

These are the types of dividends, except

• Cash

• Property

• Share

• Car

Which one is paid dividend first, between ordinary and preference shareholders ?

• Ordinary S'holders

• Treasury S'holders

• Preference S'holders

• Common S'holders

Scientific Leasing has 5,000 shares of 7%, $100 par value, cumulative preference shares outstanding. How much is the dividend per share of preference ?

• $7

• $70

• $35,000

• $3,500

Scientific Leasing has 5,000 shares of 7%, $100 par value, cumulative preference shares outstanding. How much is total dividend payment to preference shareholders ?

• $7

• $70

• $35,000

• $350,000

No need to journalize Share Split

• Yes

• No

Share Split is reducing par/stated value

• Correct

• Incorrect

Journal entries for declaration of cash dividend

• Dr. Dividend Payable

  Cr. Retained Earning

• Dr. Cash

  Cr. Retained Earnings

• Dr. Cash Dividend

  Cr. Dividend Payable

• Dr. Share Dividend

  Cr. Retained Earnings