Question

Kingbird Limited is a private corporation reporting under ASPE. At December 31, 2021, its general ledger contained the following summary data:

Cost of goods sold
$1,239,000
Interest expense
36,800
Interest revenue
15,400
Operating expenses
215,000
Retained earnings, January 1
546,100
Sales
1,660,000

Additional information:
1. In 2021, common share dividends of $24,900 were declared on June 30 and December 31. The dividends were paid on July 8, 2021, and January 8, 2022, respectively.
2. The company's income tax rate is 20%.

Collapse question part
(a)
Record the dividend transactions in 2021.

Answer 1

Date	Accounts and Explanation	Debit	Credit
30-Jun	Cash Dividend A/c	24,900
	Dividend Payable A/c		24,900
	(Dividend Declared)
8-Jul	Dividend Payable A/c	24,900
	Cash A/c		24,900
	(Dividend Paid)
31-Dec	Cash Dividend A/c	24,900
	Dividend Payable A/c		24,900
	(Dividend Declared)

Dividend is an expense nature

Dividend payable is liability nature

The payment of December dividend will not enter in 2021. This is paying in 2022 January month