Question

Entries for Cash Dividends

The declaration, record, and payment dates in connection with a cash dividend of $76,900 on a corporation's common stock are July 9, August 31, and October 1. Journalize the entries required on each date.

If no entry is required, select "No entry required" and leave the amount boxes blank.

July 9
Aug. 31
Oct. 1

Answer 1

Solution

Date	Accounts title and explanation	Debit	Credit
July 9	Cash Dividends	$     76,900.00
	Dividends payable		$     76,900.00
	(To record declaration of Dividend)
Aug- 31	No entry required
Oct 1	Dividends payable	$     76,900.00
	Cash		$     76,900.00
	(To record distribution of dividends)

No entry is made on record date.