Question

Woolford Inc. declared a cash dividend of $1 per share on its 2 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August 15. Prepare all journal entries necessary on those three dates. (Enter answers in dollars. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit TAug. 1 Retained Earnings 2,000,000 Dividends Payable 2,000,000 Aug. 15 No Entry x No Entry 0 Sep. 9 Dividends Payable 2,000,000 Cash 2,000,000

Why is the 0 entry red?

Cole Inc. owns shares of Marlin Corporation stock. At December 31, 2020, the securities were carried in Cole’s accounting records at their cost of $875,000, which equals their fair value. On September 21, 2021, when the fair value of the securities was $1,200,000, Cole declared a property dividend whereby the Marlin securities are to be distributed on October 23, 2021, to stockholders of record on October 8, 2021.

Help with the red entries ?!

Answer 1

1) Journal Entry :-

Date	Particulars	Debit($)	Credit($)
Aug 1	Retained Earning	2000000
	Dividend Payable		2000000
Aug 15	No Entry	0
	No Entry		0
Sep 9	Dividend Payable	2000000
	Cash		2000000

2) Journal Entry :-

Date	Particulars	Debit($)	Credit($)
Sep 21	Equity Investments	325000
	Unrealized Holding Gain		325000
	(To Record Gain or Loss)
	Retained Earnings	1200000
	Property Dividends Payable		1200000
	(To Record Property Dividend)
Oct 8	No Entry	0
	No Entry		0
Oct 23	Property Dividends Payable	1200000
	Equity Investment		1200000