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- When cash dividends are paid, this reduces the cash balance stated within the assets section of the balance sheet, as well as the offsetting amount of retained earnings in the equity section of the report1.For example, a corporation pays out a $1 dividend to each holder of its 250,000 outstanding shares1.Another example: Consider a company with two million common shares that declares a cash dividend of $0.25 per share. At the time of the dividend declaration, the company records a $500,000 debit to its retained earnings account and a credit to the dividends payable account for the same amount2.Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.When cash dividends are paid, this reduces the cash balance stated within the assets section of the balance sheet, as well as the offsetting amount of retained earnings in the equity section of the report. As an example, a corporation pays out a $1 dividend to each holder of its 250,000 outstanding shares.www.accountingtools.com/articles/how-dividends-a…Consider a company with two million common shares that declares a cash dividend of $0.25 per share. At the time of the dividend declaration, the company records a $500,000 debit to its retained earnings account and a credit to the dividends payable account for the same amount.www.investopedia.com/ask/answers/090415/do-div…
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WEBApr 24, 2024 · Stock dividends impact the shareholders' equity section of the corporate balance sheet, while cash dividends reduce retained earnings.
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