i have an accounting assignment and i need help?

Question

im $650 000 out in my balance sheet. one of the notes in the addition info is "a final dividend of 25c on each fully paid share is proposed" do i need to make a provision for this? there are 10 100 000 fully paid shares...i think....

Answer 1

Watch the language used. If it's merely proposed, no entry is needed. If it's announced or declared, then yes, you need to take up the liability.