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Problem 1: In 2017, Dickens Company had a beginning balance in its Cash Dividend Payable account of $5,000 and an ending balance of $4,000. During 2017, the only dividends Dickens declared were $46,000 in cash to the common stockholders. How much cash was paid to the common stockholders?
a. $47,000 b. $1,000 c. $46,000 d. $45,000
Problem 2: Arco Corporation declared a cash dividend on June 2 of $6 per common share. The company has 2,000 shares of common stock authorized, 1,000 shares issued, and 200 in the treasury. The entry to record the declaration of the cash dividend increases a(n)
a. stockholders' equity account. b. liability. c. asset. d. expense.
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