Return to Question Item 18 - Part 2 of 3
Required Information:
On October 1, Allison Corporation declared a $70,000 cash dividend to be paid on December 15 to shareholders of record on November 1. Which of the following shows how Allison's financial statements will be affected on October 1?
Balance Sheet Income Statement Statement of Cash Flows
Assets = Dividends Payable + Common Stock Retained Earnings
Rev. - Exp. = Net Inc.
A. (70,000) = (70,000) + NA NA NA - NA = NA (70,000) FA
B. NA = NA + NA NA NA - NA = NA NA
C. NA = 70,000 + NA (70,000) NA - NA = NA (70,000) FA
D. NA = 70,000 + NA (70,000) NA - NA = NA NA
