(Answered) Problem - cash dividend and liquidating dividendaddison

Accounting

Problem - Cash Dividend and Liquidating Dividend

Addison Corporation has ten million shares of common stock issued and outstanding. On June 1 the board of directors voted a 60 cents per share cash dividend to stockholders of record as of June 14, payable June 30.

Instructions -

(a) Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings.

(b) How would the entry differ if the dividend were a liquidating dividend?

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