How does The J.M. Smucker Company’s dividend announcement impact the company’s financial statements?

Jif peanut butter jarOn October 25, 2019, The J.M. Smucker Company made the following dividend announcement:

The J. M. Smucker Company (NYSE: SJM) today announced that its Board of Directors has approved a $0.88 per share dividend on the common shares of the Company. The dividend will be paid on Monday, December 2, 2019, to shareholders of record at the close of business on Friday, November 15, 2019.


  1. What is the impact on Smucker’s balance sheet related to the dividend on the following dates:
    1. October 25, 2019
    2. November 15, 2019
    3. December 2, 2019
  2. On what date will a shareholder receive the cash dividend?
  3. On what date does the dividend become a liability for Smucker’s?
  4. Does the dividend announcement or payment have an impact on net income? Explain.

Copyright 2019 Wendy M. Tietz, LLC

About Dr. Wendy Tietz, CPA, CMA, CSCA, CGMA

Dr. Wendy Tietz is a professor of accounting at Kent State University in Kent, Ohio, USA. She is also a textbook author with Pearson Education.

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