Bookkeeping - Page 115 of 146 - Online Accounting

How to account for cash dividends

Jul 8, 2020 Bookkeeping by Adam Hill

Paid on a per share basis, only the shareholders on record by a certain date are entitled to receive the cash payout. Dividends are often paid quarterly, but may also be paid annually or semi-annually. Retained earnings, an equity account found on th...

Capital Gains vs. Dividend Income: The Main Differences

Jul 8, 2020 Bookkeeping by Adam Hill

In some cases, the corporation will use the cash from the retained earnings to reduce its liabilities. As a result, it is difficult to identify exactly where the retained earnings are presently....

Do Dividends Reduce Net Income?

Jul 8, 2020 Bookkeeping by Adam Hill

Dividends paid does not appear on an income statement, but does appear on the balance sheet. While cash dividends reduce the overall shareholders' equity balance, stock dividends represent a reallocation of part of a company's retained earnings to th...

Types of dividends

Jul 7, 2020 Bookkeeping by Adam Hill

For the joint-stock company, paying dividends is not an expense; rather, it is the division of after-tax profits among shareholders. Retained earnings (profits that have not been distributed as dividends) are shown in the shareholders' equity section...

Pledging, Selling, Direct Write-Off Method

Jul 7, 2020 Bookkeeping by Adam Hill

The direct write-off method takes place after the account receivable was recorded. You must credit the accounts receivable and debit the bad debts expense to write it off. The allowance method records an estimate of bad debt expense in the same accou...