Question

In: Accounting

Oriole Company declared dividends of $19700 in fiscal 2021 and paid the $41000 dividends that were...

Oriole Company declared dividends of $19700 in fiscal 2021 and paid the $41000 dividends that were declared in fiscal 2020. Oriole paid the 2021 dividends in early fiscal 2022. Which of the following journal entries would NOT be recorded in fiscal 2021?

debit to Dividends Payable and credit to Cash for $41000

debit to Retained Earnings and credit to Cash Dividends for $19700

debit to Dividends Payable and credit to Cash for $19700

debit to Cash Dividends and credit to Dividends Payable for $19700

Solutions

Expert Solution

Option c i.e. debit to Dividends Payable and credit to Cash for $19700 is the Journal entry that will not be posted in Fiscal 2021.

Explanations:

Option a i.e. debit to Dividends Payable and credit to Cash for $41000 is incorrect as this entry will be posted for paying the Dividends for Year 2020 in Year 2021.

Option b i.e. debit to Retained Earnings and credit to Cash Dividends for $19700 is incorrect as this entry will be the closing entry for the dividend expenses recorded for Year 2021 which will be posted while closing the books for Year 2021.

Option c i.e. debit to Dividends Payable and credit to Cash for $19700 is correct as this dividend will be paid in the Year 2022. So no entry of cash payment of dividend expenses of Year 2021 will be posted in Year 2021.

Option d i.e. debit to Cash Dividends and credit to Dividends Payable for $19700 is incorrect as this entry will be recorded in Year 2021 as the journal entry for dividends declared in the Year 2021.

  

ekkarill92 answered 2 years ago
Next > < Previous

Related Solutions

Net income for the year was $117,000. Dividends of $114,000 cash were declared and paid. Scoreteck’s...
Net income for the year was $117,000. Dividends of $114,000 cash were declared and paid. Scoreteck’s only noncash expense was $87,000 of depreciation. The company purchased plant assets for $87,000 cash. Notes payable of $37,000 were issued for $37,000 cash.    Complete the following spreadsheet in preparation of the statement of cash flows. (The statement of cash flows is not required.) Report operating activities under the indirect method. (Enter all amounts as positive values.) SCORETECK CORPORATION Spreadsheet for Statement of...
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in...
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $160,000 in the current year. It also declared and paid dividends on common stock in the amount of $2.60 per share. During the current year, Sneer had 1 million common shares authorized; 360,000 shares had been issued; and 154,000 shares were in treasury stock. The opening balance in Retained Earnings was $860,000 and Net Income for the current year was $360,000....
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in...
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $190,000 in the current year. It also declared and paid dividends on common stock in the amount of $2.90 per share. During the current year, Sneer had 1 million common shares authorized; 390,000 shares had been issued; and 181,000 shares were in treasury stock. The opening balance in Retained Earnings was $890,000 and Net Income for the current year was $390,000....
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in...
The annual report for Sneer Corporation disclosed that the company declared and paid preferred dividends in the amount of $200,000 in the current year. It also declared and paid dividends on common stock in the amount of $3.00 per share. During the current year, Sneer had 1 million common shares authorized; 400,000 shares had been issued, and 190,000 shares were in treasury stock. The opening balance in Retained Earnings was $900,000 and Net Income for the current year was $400,000....
How are the dividends declared and paid by a subsidiary during the year eliminated in the...
How are the dividends declared and paid by a subsidiary during the year eliminated in the consolidated workpapers under each method of accounting for investments?
Cash dividends of $71,390 were declared during the year. Cash dividends payable were $10,752 at the...
Cash dividends of $71,390 were declared during the year. Cash dividends payable were $10,752 at the beginning of the year and $15,808 at the end of the year. The amount of cash for the payment of dividends during the year is a.$71,390 b.$60,638 c.$87,198 d.$66,334
Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000...
Cash dividends of $50,000 were declared during the year. Cash dividends payable were $10,000 and $5,000 at the beginning and end of the year, respectively. The amount of cash for the payment of dividends during the year is A) $60,000 B) $50,00 C) $55,000 D) $65,000 ------------------------------------------------------- A company with 81,210 authorized shares of $7 par common stock issued 47,603 shares at $12 per share. Subsequently, the company declared a 2% stock dividend on a date when the market price...
The following data were taken from the records of Oriole Company for the fiscal year ended...
The following data were taken from the records of Oriole Company for the fiscal year ended June 30, 2020. Raw Materials Inventory 7/1/19 $57,500 Factory Insurance $4,900 Raw Materials Inventory 6/30/20 41,500 Factory Machinery Depreciation 17,000 Finished Goods Inventory 7/1/19 96,300 Factory Utilities 31,100 Finished Goods Inventory 6/30/20 22,100 Office Utilities Expense 8,550 Work in Process Inventory 7/1/19 21,300 Sales Revenue 561,300 Work in Process Inventory 6/30/20 28,200 Sales Discounts 4,300 Direct Labor 142,650 Plant Manager’s Salary 65,100 Indirect Labor...
A stock has declared quarterly dividends of $0.5 to be paid in 3, 6, and 9...
A stock has declared quarterly dividends of $0.5 to be paid in 3, 6, and 9 months. The current stock price is $60. The risk-free interest rate is 12% (APR compounded quarterly). What is the fair forward price for a 9 month forward contract on the stock?
Golden Corporation declared and paid $3,900 of cash dividends during the current year ended December 31....
Golden Corporation declared and paid $3,900 of cash dividends during the current year ended December 31. Its financial statements also reported the following summarized data: Required: 1. Complete the horizontal analyses for each item in Golden Corporation’s comparative financial statements. TIP: Calculate the increase (decrease) by subtracting the previous year from the current year. Calculate the percentage by dividing the amount of increase (decrease) by the previous year balance. 2-a. Use the horizontal (trend) analyses to identify the accounts where...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT