On June 1 (date of declaration), the company's board of directors announces the intention to pay...
On June 1 (date of declaration), the company's board of directors announces the intention to pay a $0.50 per share dividend on the 1,000,000 outstanding shares of common stock to the stockholders of record on June 15. The payment date for the cash dividend is June 30. What account and amount would we credit when we record the journal entry on the date of record?
a) dividends, $500,000
b) dividends payable, $500,000
c) cash, $500,000
d) no entry required
During the year, we made a payment of long-term notes payable of $45,000 and borrowed $20,000 on a long-term note payable. Which of the following is correct for our statement of cash flows?
a) Net cash used for financing activities is ($25,000).
b) Net cash provided by investing activities is $25,000.
c) Net cash provided by financing activities is $25,000.
d) Net cash used for financing activities is ($45,000)
Homework Answers
On June 15th no entry is required to be passed. Entries are passed only on June 1 in June 30.
No entry required
Option d)
Borrowing are part of financing activity.
= $20,000 - $45,000
= $25,000 (Cash paid is more than cash borrowed)
Net cash used for financing activities is ($25,000)
Option a)
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