Ask Experts Questions for FREE Help !
Ask
    ppie1981's Avatar
    ppie1981 Posts: 1, Reputation: 1
    New Member
     
    #1

    Nov 13, 2010, 08:24 AM
    Is declared dividend included in the changes in equity?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
    Ultra Member
     
    #2

    Nov 13, 2010, 10:01 AM

    Yes. The entry to declare dividends is to debit Dividends Declared and credit Dividends Payable.

    Dividends Declared is a contra-equity account and is closed out of Retained Earnings at year end. Some companies will make their initial debit entry to Retained Earnings.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Accounting for dividend declared [ 1 Answers ]

Journal entry for dividend declared

Dividend payments and declared dividends? [ 1 Answers ]

In preparing my income statement I was given this piece of additional information: During 2008, the person recorded dividend payment of $260 000 to a major shareholder for consulting work. A dividend was also declared on Dec 31, 2008 in the amount of $120000. How will I incorporate this...

How to journalize dividend declared and payment before year end close accouts [ 2 Answers ]

I have one case for our members to fix out in term of the dividend We have two respective companies (Com A and Com B) Com A declared and paid dividend to Com B, minority shareholder, with the amount of $60,000 in cash. The Com B paid 85% of the dividend income to its shareholders. Note:...

What is Debentures,Equity Shares and Dividend [ 1 Answers ]

Hello I like to know the What is Debentures, Equity Shares and dividend . Can any one give simple explanation on this. Why the companies are going for this. Thank you veearrgee


View more questions Search