Question

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

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Answer #1
Answer
Love Corporation
Horzonatal statements model
Balance Sheet Income Statement
Date Assets = Liabilities + Shareholder's equity Revenues - Expenses = Net Income Cash Flow
Common Stock Retained Earning
01/05/2018 = $     50,000 + -$     50,000 - =
15/05/2018 = + NA - =
31/05/2018 -$     50,000 = -$     50,000 + NA - = ($50,000) FA
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