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Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
Edition 4ISBN: 978-0078025372 Exercise 11
Accounting for Dividends during the Credit Crisis
Black Decker is a leading global manufacturer and marketer of power tools, hardware, and home improvement products. A press release on April 30, 2009, contained the following announcement:
At the time of the press release, Black Decker had 150,000,000 shares authorized and 60 million outstanding. The par value for the company's stock is $.50 per share.
Required:
1. Prepare journal entries as appropriate for each of the three dates mentioned above.
2. Explain how a dividend cut from $0.42 to $0.12 will strengthen the company's balance sheet.
Black Decker is a leading global manufacturer and marketer of power tools, hardware, and home improvement products. A press release on April 30, 2009, contained the following announcement:
At the time of the press release, Black Decker had 150,000,000 shares authorized and 60 million outstanding. The par value for the company's stock is $.50 per share.
Required:
1. Prepare journal entries as appropriate for each of the three dates mentioned above.
2. Explain how a dividend cut from $0.42 to $0.12 will strengthen the company's balance sheet.
Explanation
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Verified
1.
The required accounting entries shoul...
Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby
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