Question

The entry to record the payment of a previously declared dividend of $2.00 per share on 21,500 shares of common stock includes a? ________.

Answer 1

The Company has dividend payable of $43,000 upon declaration of a cash dividend. Below is the entry to record the payment of this dividend:
Debit: Dividend Payable $43,000.00
Credit: Cash on Hand / Cash in Bank $43,000.00
To record payment of previously declared dividend.