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.

-How will the May 1 payment of the dividend affect the elements of the financial statements?

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.

-How will the May 1 payment of the dividend affect the elements of the financial statements?
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. -How will the May 1 payment of the dividend affect the elements of the financial statements? A) Option A B) Option B C) Option C D) Option D

-How will the May 1 payment of the dividend affect the elements of the financial statements?

Quizplus · Accepted Answer

The payment will decrease assets (cash)and liabilities (dividends payable).It is reported as a cash outflow in the financing activities section of the statement of cash flows.

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