The declaration, record, and payment dates in connection with a cash dividend of

Question

The declaration, record, and payment dates in connection with a cash dividend of $804,000 on a corporation’s common stock

The stock outstanding when a corporation has issued only one class of stock.

are June 15, August 10, and September 15.

Journalize the entries required on each date. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

Cash Dividends

Journalize the entries required on each date. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

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Solution

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CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 120 Accounts Receivable 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 151 Prepaid Insurance 181 Land 193 Equipment 194 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 226 Interest Payable 231 Cash Dividends Payable 236 Stock Dividends Distributable 241 Salaries Payable 261 Mortgage Note Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 351

Cash Dividends

352 Stock Dividends 390 Income Summary

Journalize the entries required on each date. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

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JOURNAL

DATE DESCRIPTION POST. REF. DEBIT CREDIT

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Solution

DATE DESCRIPTION POST. REF. DEBIT CREDIT

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REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Selling Expenses 534 Rent Expense 535 Insurance Expense 536 Office Supplies Expense 537 Organizational Expenses 562 Depreciation Expense-Equipment 590 Miscellaneous Expense 710 Interest Expense

Explanation / Answer

DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 15-Jun Cash Dividend 352 $804,000 Cash Dividend payable 231 $804,000 (being dividend declared 2 10-Aug no entry for record there is just a memorandum entry that the company will pay dividend 3 15-Sep Cash Dividend payable 231 804000 Cash 110 804000

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