How do the adjusted trial balance

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Reference no: EM131519747

Question: 1. Matt has been told by his instructor that dividends reduce retained earnings (and therefore stockholders' equity). However, since he knows that stockholders are receiving the dividend, Matt doesn't understand how paying a dividend would decrease stockholders' equity. Explain this to Matt.

2. How do the adjusted trial balance and the post-closing trial balance differ? Which accounts are shown in the adjusted trial balance but not in the post-closing trial balance? Which account is shown in both trial balances but with a different balance on each?

Reference no: EM131519747

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