Question

Martinez Corp. has 7,900 shares of common stock outstanding. It declares a $5 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Answer 1

Nov. 1

Dr Cash Dividend 39,500

Cr Dividends Payable 39,500

Dec. 31

Dr Dividends Payable 39,500

Cr Cash 39,500

Step-by-step explanation:

Martinez Corp Journal entries

Nov. 1

Dr Cash Dividend 39,500

(7,900 shares of common stock ×5 per shares)

Cr Dividends Payable 39,500

Dec. 31

Dr Dividends Payable 39,500

Cr Cash 39,500