Question

After a successful year of operations, CIC has decided to pay a dividend to its shareholders....

After a successful year of operations, CIC has decided to pay a dividend to its shareholders. On January 1, CIC declared a $3,000 cash dividend to be paid on January 31 to shareholders of record on January 15.

Required

Record the events occurring on January 1 and January 31 in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA).

Date

Balance Sheet

Income Statement

Cash Flow

Assets

Liab.

Equity

Rev.

Exp.

Net Inc.

Cash

Div. Pay.

C. Stock

R. Earn.

Jan. 1

Jan. 31

Why is no entry required for January 15?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

There is no entry on January 15 because the liability to pay dividend will arise when the dividend is declared and that particular liability will be paid off on January 30. there is no liability or asset or expense or income arise on January 15 thus entry is not required

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On May 1, 2018, Love Corp. declared a $50,000 cash Dividend to be paid May 31...
On May 1, 2018, Love Corp. declared a $50,000 cash Dividend to be paid May 31 to share holders of record on May 15. Record the events on May 1 and May 31 in a horizontal statements model like the following one. In the cash flow column, indicate whether the item is an OA, IA ,or FA. Assets = Liab. + Com. Stock + Ret. Earn | Rev - Exp. = Net Inc. | Cash Flow
Pay cash dividends to stockholders for $60,000 1. How would this impact net income? state increase...
Pay cash dividends to stockholders for $60,000 1. How would this impact net income? state increase or decrease and amount or NA (example: increase 10,000) 2. How would this impact the cash (bank) account? state increase or decrease and amount or NA  (example: decrease 10,000) 3. What type of cash flow activity would it be on the cash flow statement? put OA, IA, FA, or NA  (example: OA) OA= operating activity IA= investing activity FA=financing activity NA= not applicable
Beacon Corporation issued a 7 percent stock dividend on 27,500 shares of its $7 par common...
Beacon Corporation issued a 7 percent stock dividend on 27,500 shares of its $7 par common stock. At the time of the dividend, the market value of the stock was $30 per share. Required a. Compute the amount of the stock dividend. Stock dividend Show the effects of the stock dividend on the financial statements using a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity...
Rainey Enterprises loaned $50,000 to Small Co. on June 1, 2018, for one year at 9...
Rainey Enterprises loaned $50,000 to Small Co. on June 1, 2018, for one year at 9 percent interest. Required Show the effects of the following transactions in a horizontal statements. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). For any element not affected by the event, leave the cell blank. (Not every cell will require entry. Do not round intermediate calculations. Enter any decreases to...
Mercury Corporation issued 6,500 shares of no-par common stock for $20 per share. Mercury also issued...
Mercury Corporation issued 6,500 shares of no-par common stock for $20 per share. Mercury also issued 3,800 shares of $45 par, 6 percent noncumulative preferred stock at $55 per share. Required Record these events in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank.
Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2018, for one year at 6...
Rainey Enterprises loaned $20,000 to Small Co. on June 1, 2018, for one year at 6 percent interest. Required Show the effects of the following transactions in a horizontal statements. In the Cash Flow column, indicate whether the item is an operating activity (OA), an investing activity (IA), or a financing activity (FA). The letters NA indicate that an element is not affected by the event. (Do not round intermediate calculations. Enter any decreases to account balances and cash outflows...
On December 31, 2020, Blossom Corporation had the following shareholders’ equity accounts: BLOSSOM CORPORATION Balance Sheet...
On December 31, 2020, Blossom Corporation had the following shareholders’ equity accounts: BLOSSOM CORPORATION Balance Sheet (partial) December 31, 2020 Shareholders’ equity      Common shares (unlimited number of shares authorized, 85,000 issued) $1,000,000      Retained earnings 490,000 Total shareholders’ equity $1,490,000 During the year, the following transactions occurred: Jan. 15 Declared a $1 per share cash dividend to shareholders of record on January 31, payable February 15. July 1 Announced a 2-for-1 stock split. The market price per share on the date...
Fresh Foods established a petty cash fund of $275 on January 2. On January 31, the...
Fresh Foods established a petty cash fund of $275 on January 2. On January 31, the fund contained cash of $72.25 and vouchers for the following cash payments:      Maintenance expense $ 82.25   Office supplies 84.80   Transportation expense 32.50 The three distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund. 1. value: 10.00 points Required information Required...
Concord Corp. completed the following transactions in 2014, the first year of operation: 1. Issued 23,000...
Concord Corp. completed the following transactions in 2014, the first year of operation: 1. Issued 23,000 shares of $22 par common stock for $33 per share. 2. Issued 4,800 shares of $47 par, 5 percent, preferred stock at $49 per share. 3. Paid the annual cash dividend to preferred shareholders. 4. Issued a 5 percent stock dividend on the common stock. The market value at the dividend declaration date was $37 per share. 5. Later that year, issued a 2-for-1...
Effect of no-par common and par preferred stock on the horizontal statements model LO 8-4 Mercury...
Effect of no-par common and par preferred stock on the horizontal statements model LO 8-4 Mercury Corporation issued 8,000 shares of no-par common stock for $20 per share. Mercury also issued 1,100 shares of $65 par, 6 percent noncumulative preferred stock at $75 per share. Required: Record these events in a horizontal statements model. In the cash flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA to indicate that...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT