The Dates of Importance in Connection with a Cash Dividend

question 61

Essay

The dates of importance in connection with a cash dividend of $50,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date.

---

Definitions:

Short-Term Notes Payable

Short-term debts or obligations that are due to be paid within one year, often in the form of promissory notes.

Accruals

Accounting adjustments for revenues that have been earned but not yet received, or expenses that have been incurred but not yet paid.

EBITDA Coverage Ratio

A financial ratio that measures a company's ability to pay off its operating expenses and debts with its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

Debt Ratio

A financial ratio that compares a company’s total debt to its total assets, indicating the proportion of a company's assets that are financed by debt.