Question

A recent annual report for Nordstrom Incorporated disclosed that the company declared and paid dividends on common stock in the amount of $1.20 per share. During the year, Nordstrom had 1,000,000,000 authorized shares of common stock and 191,200,000 issued shares. There is no treasury stock.

Answer 1

The journal is in the attachment. The product of the outstanding stock by the dividend per share is $229,440,000

How to solve for the journal

The calculation can be rephrased as follows:

Multiplying the outstanding stock by the dividend per share:

Outstanding stock * Dividend per share

= 191,200,000 * $1.20

= $229,440,000

(Note: The first entry can also utilize the dividend account instead of the retained earnings account.)

Question

A recent annual report for Nordstrom Inc., disclosed that the company declared and paid dividends on common stock in the amount of $1.20 per share. During the year, Nordstrom had 1,000,000,000 authorized shares of common stock and 191,200,000 issued shares. There is no treasury stock.

Required: Assume Nordstrom declared the entire dividend ($1.20 per share) on February 20 and subsequently paid the dividend on March 1. Prepare a journal entry to record the declaration and payment of dividends. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).)