ABC Company has decided to declare a cash dividend of $2 per share on 150,000 shares...

ABC Company has decided to declare a cash dividend of $2 per share on 150,000 shares of outstanding stock. The declaration date is March 15, the date of record is April 1, and the payment date is April 15. (10 points)

Instructions: Journalize the entries required on each date

Expert Solution

Date	Account's tittle	Debit $	Credit $
15-Mar	Cash Dividend ( 150,000 units x $ 2 )	300,000
	Dividend Payable		300,000
	(Cash divided declared $ 2 per share for 150,000 shares)

1-Apr	No journal entry is required on this date since, date of declaration is March 15

15-Apr	Dividend Payable	300,000
	Cash		300,000
	(Payment of dividend)

	Retained Earnings	300,000
	Cash Dividend		300,000
	(Adjustment of dividend against Retained Earnings )

ekkarill92 answered 1 year ago

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