How does Apple’s dividend declaration affect its liabilities?

Apple products

Apple Inc. (NASDAQ:APPL) recently had a dividend announcement. The announcement read:

Apple Inc (NASDAQ:AAPL) on 10/28/2021 declared a dividend of $0.2200 per share payable on November 11, 2021 to shareholders of record as of November 08, 2021.

Questions

  1. On which date will Apple record a liability for the dividend?
  2. On which date will Apple pay the cash dividend?
  3. On the date of declaration, what will be the impact (increase, decrease, no effect) on Apple’s: (a) assets; (b) liabilities; and (c) stockholders’ equity?
  4. On the date of payment, what will be the impact (increase, decrease, no effect) on Apple’s: (a) assets; (b) liabilities; and (c) stockholders’ equity?

Copyright 2021 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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