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astubb91
Feb 19, 2008, 10:46 AM
How do you journalize a statement when a person declares the required cash dividend on the preferred stock and a $1.15 dividend on the common stock?

MaggieMouse
Feb 20, 2008, 01:32 PM
Dr. Retained earning
Cr. Dividend payable

morgaine300
Feb 20, 2008, 07:40 PM
Depending on the textbook, it can also be debited to Cash Dividends, a contra equity account, rather than directly out of Retained Earnings.