Question

Entries for Cash Dividends The declaration, record, and payment dates in connection with a cash dividend of $93,000 on a corporation's common stock are February 1, March 18, and May 1. Journalize the entries required on each date. If no entry is required, select "No Entry Required" and leave the amount boxes blank. Feb. 1 Mar. 18 May. 1

Answer 1

Date	General Journal	Debit	Credit
1-Feb	Cash Dividends	$ 93,000.00
	Dividends Payable		$ 93,000.00
	(Dividend Declared)
18-Mar	No Entry Required
1-May	Dividends Payable	$ 93,000.00
	Cash		$ 93,000.00
	(Dividends paid)

No entry is required for record date of dividends.

When dividend is declared a liability is created for payment of dividend.