Question

Blossom Corporation was organized on January 1, 2019. During its first year, the corporation issued 2,050 shares of $50 par value preferred stock and 102,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2019, $4,625; 2020, $13,500; and 2021, $28,500.

Required:
Journalize the declaration of the cash dividend at December 31, 2021.

Answer 1

December 31, 2021

Debit : Dividends $28,500

Credit : Shareholders for Dividends $28,500

Step-by-step explanation:

The Dividends declared present a present obligation by the entity to its shareholders.