Answer:
April 1 Dividends $20,000
Dividends Payable Account $20,000
Step-by-step explanation:
The question is to make appropriate journal entries for Desert Apparel's transactions within the month of April
This is done as follows:
Date Journal Description Debit Credit
April 1 Dividends $20,000
Dividends Payable Account $20,000
Being the record of dividend payable to stockholders
April 15 No journal entry is required
April 30 Dividends Payable Account $20,000
Cash Account $20,000
Being the record of payment of the dividend on shares to shareholders
Note: Dividend amount = 5,000 shares x $4 = $20,000