The Following Transaction Took Place for XYZ Corporation:​Nov

question 197

Essay

The following transaction took place for XYZ Corporation:​Nov. 12Declared a total cash dividend of $45,000 for stockholders of record November 20 payable on December 1.​Required
(a) Record the journal entries required by these events.
(b) Briefly describe the significance of November 20.

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Definitions:

Formal Instrument

A legal document expressing an agreement, obligation, or right enforceable by law.

Note Receivable

A financial asset representing a written promise for the repayment of a specific amount of money, plus interest, by a debtor to the lender at a future date.

Accounts Receivable Subsidiary Ledger

An Accounts Receivable Subsidiary Ledger is a detailed ledger that contains individual accounts for all debtors, tracking their sales on credit and payments.

General Ledger

The general ledger is the primary accounting record of a company that uses double-entry bookkeeping, summarizing all transactions into accounts for financial statements.