Page 84 - Accounting Principles (A Business Perspective)

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Transaction 15: Dec. 31 A dividend of $3,000 was paid to stockholders.
General Journal

Date Account Titles and Explanation Post. Debit Credit
Ref.
2010 Dec. 31 Dividends (-SE) 320 3 0 0 0
Cash (-A) 100 3 0 0 0
Dividends were paid to stockholders.

General Ledger
Dividends
(Dr.) Acct. No. 320 (Cr)
2010
Dec. 31 3,000
Cash
(Dr.) Acct. No. 100 (Cr.)
2010 2010
Dec. 1 Beg Bal. 50,000 Dec. 1 40,000
Dec. 7 4,500 Dec. 1 2,400
Dec. 15 5,000 Dec. 1 1,200
Dec. 26 500 Dec. 17 1,400
Dec. 28 3,600
Dec. 29 150
Dec. 31 3,000
Effects of transaction
The Dividends account increases (debited); and an asset, cash, decreases (credited) by USD 3,000.

Transaction 15 concludes the analysis of the MicroTrain Company transactions. The next section discusses and
illustrates posting to ledger accounts and cross-indexing.

An accounting perspective:

Uses of technology

The concept of the Internet dates to the 1960s when the military tied together several computers
forming a "network" that allowed users to communicate with each other instantaneously on their
computers over many miles.
Then universities and scientific institutions connected to the network to meet their research and
communication needs. More and more organizations hooked up to the network over time. Today
many companies seek customers and employees over the Internet. Students and faculty use the

Internet to perform research, communicate with their colleagues (using e-mail), and search distant
libraries. Accountants in practice are heavy users of the Internet to locate company data, tax
regulations, and almost any other information they need. You will find that learning to use the
Internet effectively is essential to your future success.

Accounting Principles: A Business Perspective 85 A Global Text