Affects of declaring dividends and liquidating Horny black girls on skype

08 Apr

For a corporation, the closing entries cause revenues and expenses to be closed, and the resulting net income is closed to Retained Earnings. The company has revenues of 0,000 and Expenses of ,000 for the period.Retained Earnings will be increased by the following closing entry: The normal balance of Retained Earnings is a credit balance.

To account for a small stock dividend, you subtract the fair value of the shares from retained earnings and add it to the stock accounts.Par, or stated value, represents the minimum share market value and is frequently set at a dollar or less. Stock dividends reassign amounts from retained earnings to other equity accounts.The number of shares distributed in a stock dividend governs how you book the event.The first step in dividend management is to calculate how much of a dividend can be paid.Dividends can only be paid out of the profits of a limited company, and if the company is not making a profit then it should not be paying a dividend.