ANSWERS TO QUESTIONS
The appropriate entry would be a debit to Retained Earnings (or Dividends) for the amount to be paid, with a corresponding credit to Dividends Payable. Dividends payable is reported as a current liability. CA 5-2. Current Assets Current Liabilities Interest accrued on U.S. government securities. Preferred cash dividend, payable Nov. 1, 2007. ................
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