Cash Dividends Dividends and Its Journal Entrieshe date of payment Journal Entries For Cash Dividends Journal Entries for Liquidating Dividends Journal Entries for Stock Dividends Journal Entry for Property Dividends Journal Entry for Scrip Dividends Liquidating Dividends Property Dividends Scrip Dividends Stock Dividends The date of declaration The date of record The ex-dividend date Types of Dividends Types of Dividends and Its Journal Entries Putra is a CPA.His last position, in the corporate world, was a controller for a corporation in Costa Mesa, CA.
They are treated as a reduction of contributed capital, either additional paid-in-capital or a special contracontributed capital account, designated as “Contributed Capital Distributed” as a “Liquidating Dividend”. Common Stock Dividend Distributable = 300,000 At the time of distribution the following journal entry is required: [Debit].
Let’s assume that the Lie Dharma Putra Company issued dividend to its common stockholders of $2,500,000 of which $1,000,000 is considered income and the rest a return of contributed capital. Common Stock Dividend Distributable = 300,000 [Credit].
Farmer Corporation owns 4,000,000 shares of stock in Baha Corporation.
On December 31, 2007, Farmer distributed these shares of stock as a dividend to its stockholders.
The issuer of a 5% common stock dividend to common stockholders preferably should transfer from retained earnings to contributed capital an amount equal to the a.
At the date of declaration of a small common stock dividend, the entry should include a.
Common Stock, par = 300,000 Following the issuance the stockholder’s equity is as follows: Common Stock, [ par x 45,000] = $ 900,000 Additional Paid-in-Capital = 300,000 Total Stockholder’s Equity = 1,500,000 Note that the large stock dividend is treated as a stock split, that is, a split-up effected in the form of a dividend.
In fact, for a stock split no entry is required except a memorandum to notice the increase in the number of shares and the decrease in the par value.
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