Dividends & Retained Earnings

What is the date when the board announces its decision to pay a dividend?

• Date of declaration

• Date of record

• Date of payment

• Date of distribution

Which date determines which stockholders will receive the dividend?

• Date of declaration

• Date of record

• Date of payment

• Date of distribution

When does the dividend actually get paid to stockholders of record?

• Date of declaration

• Date of record

• Date of payment

• Date of distribution

When a cash dividend is paid, what account is debited and what account is credited?

• Debit: Cash

  Credit: Dividends Payable

• Debit: Retained Earnings

  Credit: Cash

• Debit: Dividends Payable

  Credit: Retained Earning

• Debit: Dividends Payable

  Credit: Cash

What items result in a change to the Retained Earnings account?

• Net Income (Loss)

• Dividends declared

• Zombie Apocalypse

• Prior period adjustments

Use the in-class handout to answer the following...

Retained Earnings, Jan 1, 2022 ​ (a)  

• 65800
• 68500
• 65080
• 68050

Use the in-class handout to answer the following...

Correction of 2020 error ​ ​ (a)  

• -51890
• 51890
• 58190
• -51980

Use the in-class handout to answer the following...

Retained Earnings, Jan 1, 2022, corrected ​ (a)  

• 13910
• 123990
• 117690
• 117780

Use the in-class handout to answer the following...

2022 Net Income ​ (a)  

• 345000
• -354300
• 354300
• 354310

Use the in-class handout to answer the following...

Dividend declared, May 14, 2022 ​ ​ (a)  

• 210100
• -210000
• -201000
• 210000