Q2T1_5 - Horngren'S Financial And Managerial Accounting

Question

For each account listed, identify whether the account would appear in either the income statement section or the balance sheet section of the worksheet. Assuming normal balances, identify if the account would be recorded in the debit (DR) or credit (CR) column.

12. Dividends

Step-by-Step Solution

Answer

Dividends are shown in Balance Sheet and recorded in debit (DR) column.

Step-by-Step-Solution

Step 1: Explanation on Balance sheet

Balance sheet reports the balances of assets, liabilities and equity as on particular date.

Step 2: Explanation on Dividends

Dividends are the share in the profits distributed to the stockholders of the business. It gets increased by every debits and hence reported in debit column.