Fowler Co.\'s balance sheet showed the following at December 31, 2016: A cash di

Question

Fowler Co.'s balance sheet showed the following at December 31, 2016:

A cash dividend is declared on December 31, 2016, and is payable on January 20, 2017, to shareholders of record on January 10, 2017.

Prepare all appropriate journal entries, assuming a cash dividend in the amount of $1.00 per share. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Prepare all appropriate journal entries, assuming a cash dividend in the amount of $5.00 per share. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Fowler Co.'s balance sheet showed the following at December 31, 2016:

  Common stock, $10 par $110,000   Paid-in capital - excess of par 55,000   Retained earnings 22,000

A cash dividend is declared on December 31, 2016, and is payable on January 20, 2017, to shareholders of record on January 10, 2017.

Required:

Prepare all appropriate journal entries, assuming a cash dividend in the amount of $1.00 per share. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2.

Prepare all appropriate journal entries, assuming a cash dividend in the amount of $5.00 per share. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Explanation / Answer

Hey Dear Student !!

1)

Journal In the Books of Fowler Co.:-

31-Dec-16

Retained Earnings A/c...Dr. $22000
To Dividend Payable A/c. $22000
(Being Dividend Declared)

20-Jan-17

Dividend Payable A/c...Dr. $22000
To Cash/Bank A/c. $22000
(Being Dividend Paid)

2)

Journal In the Books of Fowler Co.:-

31-Dec-16

Retained Earnings A/c...Dr. $22000
Dividend Declared A/c...Dr. $33000
To Dividend Payable A/c. $55000
(Being Dividend Declared)

20-Jan-16

Dividend Payable A/c...Dr. $55000
To Cash/Bank A/c. $55000
(Being Dividend Paid)

Pleasure Teaching You !!

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