Dividends

Question 1

Is a liability recognized for stock dividends?

Answer 1

-No

Question 2

What’s the journal entry when a dividend is declared?

Answer 2

Dr. Retained Earnings

Cr. Dividends Payable

Question 3

At what amount is dividend recorded on declaration date?

Answer 3

-Market value, gain/loss recognized on declaration date

Question 4

What is a scrip dividend?

Answer 4

-A dividend that is first distributed in note payable form