Fowler Co'S Balance Sheet Showed the Following at December 31, 2018

question 135

Essay

Fowler Co.'s balance sheet showed the following at December 31, 2018: A cash dividend is declared on December 31, 2018, and is payable on January 20, 2019, to shareholders of record on January 10, 2019.
Required:
(1.) Prepare all appropriate journal entries, assuming a cash dividend in the amount of $1.00 per share.
(2.) Prepare all appropriate journal entries, assuming a cash dividend in the amount of $5.00 per share.

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Definitions:

Distribution to Partners

Refers to the distribution of profits, income, or assets from a partnership to its partners, typically in proportion to their ownership interests.

Managing Partner

A member of a partnership who has the authority and responsibility for managing the everyday operations of the business.

Partnership Assets

Assets or property owned jointly by partners in a business partnership, used for the business’s operations.

Fiduciary Duty

An obligation to act in the best interest of another party. For instance, a fiduciary duty exists between a trustee and the beneficiaries of the trust.