University:
Alabama State University
Course:
ACC101 | Accounting
Academic year:

2024
Views:

200

Pages:

1
Author:

Charlie M.

nvestment Income: DIVIDENDS Cash Dividend Payment made by a company out of its earnings to investors in the form of cash. Dividend Income Property Dividend Dividend paid to investors in the form of assets and not cash. Shares received in lieu of cash dividend Share Dividend ayment to shareholders that consists of additional shares rather than cash. Not a Dividend Income Liquidating Payment from the corporation to its shareholders during partial or full Dividend liquidation. The distribution of payment does not come from the profit of the company, but from the entire amount of shareholder's equity. Cash received in lieu of share dividend Date of Declaration Date of Record Date of Payment Dividend Date when distribution and right to Cut-off date that determines It is important to realize that the receive the dividend is announced. It is who among the shareholder actual cash outflow doesn't occur the date when the investor recognize is entitled to dividend. until the payment date. Corporation Retained Earnings Dividends Payable Corporation Dividend Payable Asset xx No Journal Entry Investor Dividend Receivable Investor Asset xx xx