On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1. Which of the following reflects the financial statement effects on the May 1, Year 1 date of payment?

Question

On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1. Which of the following reflects the financial statement effects on the May 1, Year 1 date of payment?
On March 1, Year 1, Gilmore Incorporated declared a cash dividend on its 1,500 outstanding shares of $50 par value, 6% preferred stock. The dividend will be paid on May 1, Year 1 to the stockholders of record as of April 1, Year 1. Which of the following reflects the financial statement effects on the May 1, Year 1 date of payment? A) Choice A B) Choice B C) Choice C D) Choice D

Quizplus · Accepted Answer

The payment will decrease assets (cash) and liabilities (dividends payable). It is reported as a cash outflow for financing activities.

On March 1, Year 1, Gilmore Incorporated Declared a Cash