Dividends Declared Journal Entry

When a business declares a dividend part of the retained earnings of the business are distributed to the owners. The impact on the accounting equation is to increase the dividends payable liability and decrease the owners equity is the business.

Last modified July 16th, 2019 by Michael Brown
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Dividends

A dividend is a payment of a share of the profits of a corporation to its shareholders.

A dividend declared is a liability of the business on the dividend declaration date which becomes payable on the dividend payment dates.

Last modified July 16th, 2019 by Michael Brown
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