On May 20, the board of directors for Auction.com declared a cash dividend of 50

Question

On May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 509,000 shares of stock outstanding. Closing ded on July 31. Preparea entries for each date. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 3 4 Record the entry on the date of declaration for a cash dividend of 50 cents per share payable on the 509,000 shares of stock outstanding Note: Enter debits before credits Date General Journal Debit Credit May 20 Record entry Clear entry view general journal

Explanation / Answer

20-May Dividends declared 254500 =509000*0.5        Dividends payable 254500 14-Jun No journal entry required 0 No journal entry required 0 14-Jul Dividends payable 254500        Cash 254500 31-Jul Retained earnings 254500         Dividends declared 254500

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