Question

Larkspur Corporation has 12.20 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 81 cents per share cash dividend to stockholders of record as of June 14, payable June 30.

Prepare the journal entries for each of the dates above assuming the dividend represents a distribution of earnings. (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 0 for the amounts.)

Date	Account Titles and Explanation	Debit	Credit
choose a transaction date 6/16/146/30
choose a transaction date 6/16/146/30
choose a transaction date 6/16/146/30

Answer 1

Journal

June 1	Cash dividend	9,882,000
	cash dividends payable		9,882,000
June 14	No entry
June 30	cash dividends payable	9,882,000
	Cash		9,882,000

Dividend per share = $0.81

Number of shares of common stock issued and outstanding = 12,200,000

Total dividend = Number of shares of common stock issued and outstanding x Dividend per share

= 12,200,000 x 0.81

= $9,882,000

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