Barney is a leading global manufacturer and marketer of power tools, hardware, a

Question

Barney is a leading global manufacturer and marketer of power tools, hardware, and home improvement products. A press release contained the following announcement: NEW BRITAIN, Conn.—(BUSINESS WIRE)—Feb. 18, 2014—Barney (NYSE: BYC) announced today that its Board of Directors approved a regular first-quarter cash dividend of $0.50 per common share. This extends the company’s record for the longest consecutive annual and quarterly dividend payments among industrial companies listed on the New York Stock Exchange. The dividend is payable on Tuesday, March 18, 2014, to shareholders of record as of the close of business on Wednesday, March 5, 2014. At the time of the press release, the company had 312 million shares authorized and 156.2 million outstanding. The par value for the company’s stock is $2.50 per share.

Prepare journal entries as appropriate for each of the three dates mentioned above. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars not in millions.)

Feb. 18, 2014: Record the declaration of a cash dividend of $0.50 per share payable on the 156.20 million shares of stock outstanding.

March 5, 2014: Record the entry on the date of record for a cash dividend of $0.50 cents per share payable on the 156.20 million shares of stock outstanding.

March 18, 2014: Record the payment of the cash dividend.

Prepare a journal entry to close the dividends account. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in dollars not in millions.)

Explanation / Answer

Journal entries required are as shown below:

Date Particulars L.F Amount ($) Amount ($) Feb-18 Dividends 781,00,000    Dividend Payable 781,00,000 (For declaration of dividend recorded) 0.5*156.20 million shares Mar-05 No entry Mar-18 Dividend payable 781,00,000    Cash 781,00,000 (For Cash dividend paid)

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