E11-20 Recording the Payment of Dividends LO11-3, 11-4 A recent annual report fo

Question

E11-20 Recording the Payment of Dividends LO11-3, 11-4 A recent annual report for Malestrom Inc., disclosed that the company declared and paid dividends on common stock in the amount of $1.80 per share. During the year, Malestrom had 1,017.000,000 authorized shares of common stock and 191,370,000 issued shares. There is no treasury stock. Required: Assume Malestrom declared the entire dividend (51.80 per share) on February 20 and subsequently paid the dividend on March 1. Prepare a journal entry to record the declaration and payment of dividends. (If no entry is required fora transaction/event, selet "No journal entry required" in the first account field. Enter your answers in whole dollars not in millions (1.e., 1,000,000 not 1.0) View transaction list Journal entry worksheet Record the dedaration of dividends Note: Enter debits before credits Date General Journa Debit Credit February 20 Record entry Clear entry View general journal

Explanation / Answer

Date General Journal Debit Credit February 20 Retained earnings(191,370,000 shares × $1.80) $344,466,000 Dividends payable $344,466,000 March 01 Dividends payable $344,466,000 Cash $344,466,000

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