Answer:
a. A a result, Brett Kauffman Enterprises would Debit dividends payable account by $9,000 and credit cash by $9,000.
b. As a result, Brett Kauffman Enterprises would credit the service revenue account by $24,300 and debit cash by $24,300.
Explanation:
We can first begin by stating the terms dividend and service revenue to better understand the question.
1. Dividend
Dividends payable is a liability that comes into account when the cash dividends are paid to the stockholders.
2. Service revenue
Service revenue is payment for services rendered. It can be in the form of cash or promissory note.
a). Journal entry required at the time of payment of cash dividends:
Account Type Debit Credit
Dividends payable 9,000
Cash 9,000
A a result, Brett Kauffman Enterprises would Debit dividends payable account by $9,000 and credit cash by $9,000.
b). Journal entry required for services rendered for cash:
Account Type Debit Credit
Service revenue 24,300
Cash 24,300
As a result, Brett Kauffman Enterprises would credit the service revenue account by $24,300 and debit cash by $24,300.
