Question

On February ​5, 2018​, Superb Rental​ Corporation's board of directors declared a dividend of $ 0.10​, to be paid on March ​18, 2018​, to the shareholders of record as of the close of business on March ​9, 2018. Superb has 5,500,000 shares of $ 0.01 ​par-value common stock authorized with 1,000,000 shares issued and outstanding. The company has no preferred stock.

Required:
1. Record the declaration of the explanations from any journal entries) dividend and the payment of the dividend. Include the proper dates with each journal entry.

Answer 1

The answer is given below;

Step-by-step explanation:

March 9,2018

Retained Earnings 1,000,000*.1 Dr.$100,000

Dividend Payable Cr.$100,000

March 18,2018

Dividend Payable Dr.$100,000

Cash Cr.$100,000