Question

Delta Motors Corporation has 100,000,000 authorized shares of $1 par value common stock. As of June 30, 20x8, there were 1,000,000 shares issued and outstanding. On June 30, 20x8, the board of directors declared a $.20 per share cash dividend to be paid on August 1, 20x8, to shareholders of record on July 15, 20x8. Prepare entries in journal form to be recorded on (a) the date of declaration, (b) the date of record, and (c) the date of payment.

Answer 1

• All working forms part of the answetr

Date	Accounts title	Debit	Credit	Working
June 30 20X8	Cash Dividend	$              200,000		[1,000,000 shares outstadning x $ 0.20 per share]
[Declaration date]	Dividends payable		$              200,000
	(Cash Dividend declared)
Jul 15 20X8	NO ENTRY required
[record Date]
Aug 1 20X8	Dividends payable	$              200,000
[Payment date]	Cash		$              200,000
	(Cash Dividend PAID)