Question

Cash Dividends King Tut Corporation issued 19,000 shares of common stock, all of the same class; 12,000 shares are outstanding and 7,000 shares are held as treasury stock. On December 1, 2019, King Tut's board of directors declares a cash dividend of $0.50 per share payable on December 15, 2019, to stockholders of record on December 10, 2019. Required: Prepare the appropriate journal entries for the (a) date of declaration, (b) date of record, and (c) date of payment. If no entry is required, choose "No entry required" and leave the amount boxes blank. (a) fill in the blank 2 fill in the blank 4 (b) fill in the blank 6 fill in the blank 8 (c) fill in the blank 10 fill in the blank 12

Answer 1

King Tut Corporation

Journal Entries:

December 1, 2019

Debit Cash dividend $2,500

Credit Dividend Payable $2,500

To record the declaration of $0.50 per share payable on December 15, 2019, to stockholders of record on December 10, 2019.

December 10, 2019 No journal entry

December 15, 2019

Debit Dividend Payable $2,500

Credit Cash $2,500

To record the payment of dividends.

Step-by-step explanation:

a) Data and Calculations:

Issued 19,000 shares of common stock, all of the same class;

12,000 shares are outstanding and

7,000 shares are held as treasury stock.

December 1, 2019, Cash dividend $2,500 Dividend Payable $2,500

$0.50 per share payable on December 15, 2019, to stockholders of record on

December 10, 2019 No journal entry

December 15, 2019, Dividend Payable $2,500 Cash $2,500