Question

The declaration, record, and payment dates in connection with a cash dividend of $91,400 on a corporation's common stock are July 9, August 31, and October 1. Journalize the entries required on each date.

Answer 1

Step-by-step explanation:

The journal entries are shown below:

On July 9

Cash dividend A/c Dr $91,400

To Dividend payable $91,400

(Being cash dividend declared)

On August 31

No journal entry is required as no transaction took place

On October 1

Cash dividend payable A/c Dr $91,400

To Cash A/c $91,400

(Being payment of dividend is recorded)