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Paha777 [63]
3 years ago
14

On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred

stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1. How will the entry to record the declaration of the dividend on March 1 affect the elements of the financial statements?
Business
1 answer:
Aleksandr-060686 [28]3 years ago
8 0

Answer:

Dividend Declared (SCE) $4,500 (credit)

Shareholders for Dividends (SFP) $4,500 (credit)

Explanation:

When Dividends are declared, we recognize an Equity Element - Dividend Declared and a liability (Present Obligation that arises with declaration) to the Shareholders of the dividend.

<u>Entry :</u>

Dividend Declared (SCE) $4,500 (credit)

Shareholders for Dividends (SFP) $4,500 (credit)

Dividend Calculation = 1,500 × $50 × 6%

                                   = $4,500

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Pharma One’s analgesic drug KleenKare has a 50% share in the analgesics market in the country of Syria. Its closest competitor,
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2. The demand for analgesic drugs in the Syrian market is expected to maintain a low-growth, high-share status.

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