On January 15, 2014, Dartmouth Ltd.declared its regular quarterly dividend.It will be paid on February 15, 2014.Which of the following monthly balance sheets would have a dividend payable account reported on it?
A)December 31, 2013
B)January 14, 2014
C)January 31, 2014
D)February 28, 2014

Question

Quizplus · Accepted Answer

The dividend payable account would only be reported on the balance sheet as of the end of the month in which the dividend will be paid. Since the dividend is being paid on February 15, 2014, it would appear on the January 31, 2014 balance sheet as a liability. Therefore, the correct choice is C.