Question

Roadway Freight Corp. on June 10 declared a cash dividend of 50 cents a share on 1.8 million shares payable July 16 to all stockholders of record June 24. What is the journal entry for date of declaration?

Answer 1

The journal entry for the date of declaration of the cash dividend would include debiting Cash Dividends Declared and crediting Dividends Payable and Retained Earnings.

Step-by-step explanation:

The journal entry for the date of declaration of the cash dividend can be recorded as follows:

1. Date: June 10
2. Account: Cash Dividends Declared
3. Debit: Amount of dividend per share x number of shares
4. Account: Dividends Payable
5. Credit: Amount of dividend per share x number of shares
6. Account: Retained Earnings
7. Credit: Total amount of dividend declared