Declared a $6 per share cash dividend for common shareholders. The record date is 3-25-20 and...

Declared a $6 per share cash dividend for common shareholders. The record date is 3-25-20 and the payment date is 4-10-20.

Journalise this transaction

Solutions

Expert Solution

Journal entry at the date of declaring the dividend

Retained earnings account debit

To Dividend payable account credit

( and the dividend is only declared and not paid therefore dividend payable account will be credited and also the dividend is to be paid from the retained earnings therefore retained earning account is debited. )

Journal entry on the day of payment of dividend.

Dividend payable account debit

Cash account credit

( As, the dividend is paid by cash therefore cash account is credited and the dividend payable account is reversed by debiting it).

If you find the answer helpful please upvote.

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has...

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 45,000 shares authorized, 24,000 shares issued, and 18,000 shares of common stock outstanding. The journal entry to record the dividend declaration is: Multiple Choice Debit Retained Earnings $9,000; credit Common Dividends Payable $9,000. Debit Retained Earnings $22,500; credit Common Dividends Payable $22,500. Debit Common Dividends Payable $9,000; credit Cash $9,000. Debit Common Dividends Payable $12,000; credit Cash $12,000. Debit Retained Earnings $12,000; credit Common...

The board of directors of Western Ltd declared a cash dividend of $1.50 per share on...

The board of directors of Western Ltd declared a cash dividend of $1.50 per share on 42 000 shares of ordinary shares on 15 July, 2014. The dividend is to be paid on 15 August, 2014, to shareholders of record on 31 July, 2014. The effects of the journal entry to record the payment of the dividend on 15 August, 2014, are to: increase shareholders’ equity and increase liabilities. increase shareholders’ equity and decrease assets. decrease liabilities and decrease assets....

(Cost of equity) MAM just declared a dividend of $3.2 per share of common stock. The current stock price is $25 per share. The dividend is expected to increase at a rate of 8% per year for the future.

(Cost of equity) MAM just declared a dividend of $3.2 per share of common stock. The current stock price is $25 per share. The dividend is expected to increase at a rate of 8% per year for the future. The beta of its common stock is 1.1 and the market risk premium is 9%. The risk-free rate=5%. According to the dividend growth model approach, the cost of the equity capital is _________%.

Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this...

Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will receive one share of Badger stock for each 10 shares of stock they already own. Madison Cheesehead owns 1,000 shares of Badger stock with a tax basis of $100 per share. The fair market value of the Badger stock was $110 per share on March 25 of this year. (Leave no answer blank. Enter zero if applicable.) a. What amount of...

The board of directors of Splish Brothers Inc. declared a cash dividend of $2 per share...

The board of directors of Splish Brothers Inc. declared a cash dividend of $2 per share on 46000 shares of common stock on July 15, 2017. The dividend is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The effects of the journal entry to record the declaration of the dividend on July 15, 2017, are to

1.-Describe the significance for the cash dividend Date of record date. Explain if there is a...

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).

a. AAB company just declared a dividend of GHS5 per share. It is expected that dividend...

a. AAB company just declared a dividend of GHS5 per share. It is expected that dividend will grow by 10% for the next two years and at 20% for the subsequent three years, thereafter dividend will assume a normal growth of 10% in perpetuity.AAB earns 20% to its shareholders. How much will you pay for the share today? How much will you sell it for in 2 years time if market conditions and expectations remain the same? b.Differentiate between variability...

West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and...

West Company declared a $0.50 per share cash dividend. The company has 190,000 shares issued, and 10,000 shares in treasury stock. The journal entry to record the payment of the dividend is: Multiple Choice Debit Common Dividends Payable $90,000; credit Cash $90,000. Debit Retained Earnings $90,000; credit Common Dividends Payable $90,000. Debit Retained Earnings $5,000; credit Common Dividends Payable $5,000. Debit Retained Earnings $95,000; credit Common Dividends Payable $95,000. Debit Common Dividends Payable $95,000; credit Cash $95,000.

Fetzer Company declared a $0.50 per share cash dividend. The company has 460,000 shares authorized, 437,000...

Fetzer Company declared a $0.50 per share cash dividend. The company has 460,000 shares authorized, 437,000 shares issued, and 18,400 shares in treasury stock. The journal entry to record the payment of the dividend is: Multiple Choice Debit Common Dividends Payable $209,300; credit Cash $209,300. Debit Common Dividends Payable $218,500; credit Cash $218,500. Debit Retained Earnings $218,500; credit Common Dividends Payable $218,500. Debit Retained Earnings $209,300; credit Common Dividends Payable $209,300. Debit Retained Earnings $230,000; credit Common Dividends Payable $230,000.

Shengyuan Company has just paid a cash dividend of 20 cents per share.

a) Shengyuan Company has just paid a cash dividend of 20 cents per share. Investors require a 16% return from investments such as this. If the dividend is expected to grow at a steady rate of 4% per year, what is the current value of the share? What will the share be worth in five years? Show working out. ...

Subjects