Question

Which of the following events in the Cash Dividend Payment Process does not require a journal entry?

a. Declaration Date

b. Payment Date

c. Record Dated.

d. All of these require an entry

Answer 1

ANS : C ( Record dated)

assume the board of directors of the srikanth Corporation declared a cash dividend on May 5, (date of declaration). The cash dividend declared is $1.25 per share to stockholders of record on July 1, (date of record), payable on July 10, (date of payment). Because financial transactions occur on both the date of declaration (a liability is incurred) and on the date of payment (cash is paid), journal entries record the transactions on both of these dates. No journal entry is required on the date of record. The Dividends Payable account appears as a current liability on the balance sheet

date of declaration and date of payment is recored in journal enteries but not date of record .option A,B,D are incorrect.