Question

Entries for Cash Dividends The declaration, record, and payment dates in connection with a cash dividend of $46,800 on a corporation's common stock are January 12, March 13, and April 12. If no entry is required, select "No Entry Required" and leave the amount boxes blank. Jan. 12 Mar. 13 Apr. 12

Answer 1

Solution

Date	Accounts title and explanation	Debit	Credit
12-Jan	Cash Dividends	$     46,800.00
	Dividends payable		$     46,800.00
	(To record declaration of Dividend)
13-Mar	No entry required
12-Apr	Dividends payable	$     46,800.00
	Cash		$     46,800.00
	(To record distribution of dividends)

There will be no entry on record date since no financial transaction has taken place on that date. The amount of dividend remains same no matter what record date is.