PE 13-3A Entries for cash dividends

The declaration, record, and payment dates in connection with a cash dividend of $1,250,000 on a corporation’s common stock are August 1, October 15, and November 14. Journalize the entries required on each date.


Answer:

Aug. 1 Cash Dividends 1,250,000
Cash Dividends Payable 1,250,000
Oct. 15 No entry required.
Nov. 14 Cash Dividends Payable 1,250,000
Cash 1,250,000