Question

Following is a recent BusinessSoftware Corp. press release:

REDMOND, Wash.—March 16, 2016 — BusinessSoftware Corp. today announced that its board of directors have declared a quarterly dividend of $0.20 per share. The dividend will be payable on June 9, 2016, to shareholders of record on May 19, 2016. The ex-dividend date will be May 17, 2016

Prepare the journal entries BusinessSoftware Corp. used to record the declaration and payment of the cash dividend for its 9,700 million shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

1. Record the journal entry on the declaration date.

2 . Record the journal entry on the date of record.

3. Record the journal entry on the payment date.

Answer 1

Journal

Date	Account Title and Explanation	Debit	Credit
March 16, 2016	Retained earning	1,940
	Dividend payable		1,940
	(To record declared dividend )
May 19, 2016	No entry
June 9, 2016	Dividend payable	1,940
	Cash		1,940
	(To record payment of dividend)

No of share outstanding = 9,700 million

Dividend per share = $0.20 per share

Total dividend payable = No of share outstanding x Dividend per share

= 9,700 x 0.20

= $1,940 million

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