Transaction: on December 15th 2011 the company declared the annual dividend of $2 per share on the outstanding common stock. The dividends will be paid on January 15th 2012.
Common Stock ($10 Par)... 50,000
PIC-in excess of par common... 30,000
My answer:
Dividends,. 10,000
Dividends Payable... 10,000
And then since nothing else is done with that account do I close it straight to the capital or income summary
Common Stock ($10 Par)... 50,000
PIC-in excess of par common... 30,000
My answer:
Dividends,. 10,000
Dividends Payable... 10,000
And then since nothing else is done with that account do I close it straight to the capital or income summary
Annual Dividend Journal Entry Correct?
