Originally Posted by Lneal
I am trying to use the indirect method on a statement of cash flows and I don't understand what to do with a cash dividend declared for $112,320. I am in the financing activities and the question asks me to enter less cash paid for dividends and I am not understanding this at all.
A declared dividend is not yet a paid or distributed dividend until the cash goes out the door.
Did it?
What would the JE have been when the dividend was declared?
Dr. R/E (or a sub account)
Cr. Dividends Payable
How did you account for the Dividend Payable credit in Curr Liab?