Bookkeeping

How To Decrease Retained Earnings With Debit Or Credit

However, common stock can impact a company’s retained earnings any time dividends are issued to stockholders. When a company pays dividends, it must debit that payment to retained earnings, which means its retained earnings balance will drop by the value of the dividends it has issued. Adjustments to retained earnings are made by first calculating […]

Principle Before Profit

What Does Profit Tell You? The reason for offering this explanation is because it seems that our Principle Before Profit philosophy is at times misunderstood by those who expect us to offer our services for even lower costs than we currently do. This is a position we simply couldn’t sustain for more than a few months… […]

Preferred Stock Dividends On An Income Statement

Content Recording Changes In Balance Sheet Accounts Presentation Of Stock Dividends And Dividends In Arrears On Balance Sheet Capital Dividend Account (Cda) The CDA balance is not found in a business‘ financial statements but may be reported in the notes to financial statements for information purposes only. Because cash dividends are not a company’s expense, […]

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