14 3 Record Transactions and the Effects on Financial Statements for Cash Dividends, Property Dividends, Stock Dividends, and Stock Splits Principles of Accounting, Volume 1: Financial Accounting
This journal entry of recording the dividend declared will increase total liabilities by $100,000 while decreasing the total equity by the same amount of $100,000. Of course, the board of directors of the company usually needs to make the approval on the dividend payment before it can declare and make the dividend payment to the