Common Stock Dividends Distributable is reported in the balance sheet: as an addition to retained earnings. in paid-in capital as an addition to common stock issued. as an asset. as a liability Solution Common stock divodend distributable after its declaration become a liability to the company therefore it is shown in liability. The amount is not a earning retained by company for its future use therefore it can not be shown as retained earning nor its a part of common stock .

1. Common Stock Dividends Distributable is reported in the balance sheet:
as an addition to retained earnings.
in paid-in capital as an addition to common stock issued.
as an asset.
as a liability
a. as an addition to retained earnings.
b. in paid-in capital as an addition to common stock issued.
c. as an asset.
d. as a liability
Solution
Common stock divodend distributable after its declaration become a liability to the company
therefore it is shown in liability. The amount is not a earning retained by company for its future
use therefore it can not be shown as retained earning nor its a part of common stock