Chapter 6
Corporations: Contributed Capital and Dividends
269
Analysis
Suppose that Joe, the president of Swanson Inc., owns 14,500 of the outstanding shares. What
percentage ownership does Joe have?
AP-7A (
5
)
a) On July 1, 2016 Jonus Enterprises declares a dividend of $5,000 to shareholders on
record on July 4, 2016. Record the journal entry associated with this transaction. Jonus
Enterprises uses the retained earnings method to record dividends.
Date
Account Title and Explanation
Debit
Credit
b) Record the journal entry when Jonus Enterprises pays out the dividend
on August 15, 2016.
Date
Account Title and Explanation
Debit
Credit
