Question

Swifty Corporation has 12.10 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 85 cents per share cash dividend to stockholders of record as of June 14, payable June 30.

Prepare the journal entries for each of the dates above assuming the dividend represents a distribution of earnings. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date 6/16/146/30	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date 6/16/146/30	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date 6/16/146/30	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

SHOW LIST OF ACCOUNTS

LINK TO TEXT

How would the entries differ if the dividend were a liquidating dividend? (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date 6/16/146/30	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date 6/16/146/30	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount
choose a transaction date 6/16/146/30	enter an account title	enter a debit amount	enter a credit amount
	enter an account title	enter a debit amount	enter a credit amount

SHOW LIST OF ACCOUNTS

LINK TO TEXT

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Answer 1

Part-1 : Journal Entry- Swifty Corporation
Date	Account Tittle	Debit	Credit
1-Jun	Retained Earning (12100000*0.85)	$10,285,000.00
	Dividend Payable		$10,285,000.00
14-Jun	No Entry
30-Jun	Dividend Payable	$10,285,000.00
	Cash		$10,285,000.00
Part-2 : Journal Entry- Swifty Corporation - in case of liquidating
Date	Account Tittle	Debit	Credit
1-Jun	Additional paid in Capital	$10,285,000.00
	Dividend Payable		$10,285,000.00
14-Jun	No Entry
30-Jun	Dividend Payable	$10,285,000.00
	Cash		$10,285,000.00