Question

A) Giant Corp. declared a cash dividend of $1.00 per share on its 400,000 shares of common stock outstanding. Declaration date March 1, date of record March 15 and payment date is April 1. Prepare the necessary journal entries related to the above information. B) Randall Company has cash in the register in the amount of $446.25 The current sales tax rate is 6.25% The company does not separate out the sales tax payable from the sales revenue. Prepare the journal entry needed to record this information on April 30

Answer 1

A) Giant Corp. declared a cash dividend of $1.00 per share. B) The journal entry needed to record the cash in the register for Randall Company is $446.25.

Step-by-step explanation:

A) The necessary journal entries related to the cash dividend declared by Giant Corp. are as follows:

1. March 1: Debit Retained Earnings $400,000 and Credit Dividends Payable $400,000
2. March 15: No journal entry is required on this date as it is the record date.
3. April 1: Debit Dividends Payable $400,000 and Credit Cash $400,000

B) The journal entry needed to record the cash in the register for Randall Company is as follows:

• April 30: Debit Cash $446.25 and Credit Sales Revenue $446.25