Three Dates That Are Significant for Cash Dividends Are Described $\quad$

question 74

Essay

Three dates that are significant for cash dividends are described in each part below.
Part A: Name each of the described dates. $\quad$$\quad$$\quad$ Description
1. Date on which the board of directors approves the dividend.
2. Date on which a list of stockholder names is prepared.
3. Date on which the dividend checks are written. Part B: Prepare the journal entry for each date. Assume a $25,000 cash dividend. Description $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ Journal Entry
1. Date on which the board of directors
$\quad$ approves the dividend.
2. Date on which a list of stockholder
$\quad$ names is prepared.
3. Date on which the dividend checks
$\quad$ are written.

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Definitions:

Costs Of Placing An Order

Expenses associated with ordering inventory, including administrative costs, shipping, handling, and procurement costs, critical in managing inventory levels.

Shortage Cost

Costs incurred from not having enough inventory or resources to meet demand, including lost sales and dissatisfied customers.

Cumulative Cash Surplus

The total amount of cash that exceeds the initial investment or expenses over a period.

Minimum Cash Balance

The lowest amount of cash that a company aims to hold in its accounts to ensure financial stability and operational efficiency.