Question

Which of the following dates related to dividends require(s) a journal entry? Select all that apply.

• The date of declaration

• The date of record

• The date of payment

Answer 1

The correct answer is

The date of declaration and The date of Payment

Explanation

On the declaration date the journal entry is passed to recongnize the liability for dividend payment and on record date no journal entry is passed, as this date is important to note that which share holders will receive the dividend and the journal entry is required on payment date, as payment for dividend has to be record in the the books of account .

So the correct answer is

The date of declaration and The date of Payment