Question

The declaration, record, and payment dates in connection with a cash dividend of $350,000 on a corporation’s common stock are February 28, April 1, and May 15.

Journalize the entries required on each date. If no entry is required, simply skip to the next transaction.

Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Step-by-step explanation:

The journal entries are shown below:

On February 28

Cash Dividend A/c Dr $350,000

To Dividend payable A/c $350,000

(Being cash dividend declared)

On April 1

No journal entry is required

May 15

Cash Dividend payable A/c Dr $350,000

To Cash A/c $350,000

(Being the payment is made for cash is recorded)