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

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).

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ekkarill92 answered 2 years ago

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