Question

1.-Describe the significance for the cash dividend Date of record date. Explain if there is a journal entry or some other type of record necessary for the cash dividend Date of record date  (200 words).

2.-Describe the significance for the cash dividend Payment date. Explain if there is a journal entry or some other type of record necessary for the cash dividend Payment date  (75 words).

Answer 1

Solution:-

1.-Describe the significance for the cash dividend Date of record date. Explain if there is a journal entry or some other type of record necessary for the cash dividend Date of record date:-

Cash dividends usually referred as cash distribution of accumulated profit by company to its shareholder. Declaration date is a date on which board of director of company declaring that dividends should be payable. Company is liable to pay dividend only after is declaration date.

Date of record date is date establish by director. Date of record date determines which shareholder will received dividends. No journal entry is required to post on date of record.

2.-Describe the significance for the cash dividend Payment date. Explain if there is a journal entry or some other type of record necessary for the cash dividend Payment date:-

This date indicates when company will pay its diivdend to its shareholder. This date always occur after the date of declaration and date of record. Journal entry need to be pass on date of payment:-

Date	Account titles and explanation	Debit	Credit
Date of payment	Dividend Payable	XXX
	Cash		XXX
	(Paid dividend declared on date of declaration)

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