Question

Entries for Cash Dividends

The declaration, record, and payment dates in connection with a cash dividend of $55,000 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

Solution

Date	General Journal	Debit	Credit
Feb-01	Cash dividends	$ 55,000.00
	Dividends payable		$ 55,000.00
	(To record declaration of dividends)
Mar-18	No entry required
May-01	Dividends payable	$ 55,000.00
	Cash		$ 55,000.00
	(To record payment of dividends)

No entry is made on date of record as their is no transaction made of financial nature.