Question

^{How do you records this transaction on the general ledger? I don't have a payment date, but this was declared at the end of the year}

The company declared dividends of $700 for the year

Answer 1

When Dividends are declared, the Journal entry at the end of year will be,

Dividends Expense account...........Debit $700

To Dividends Payable account.......Credit $700

(Being dividends declared)

If Dividends declared are paid at later date then journal entry will be

Dividends payable account......................Debit $700

To cash account......................................Credit $700