Brief Exercise 11-7 Larkspur, Inc. has 83,000 shares of common stock outstanding

Question

Brief Exercise 11-7 Larkspur, Inc. has 83,000 shares of common stock outstanding. It declares a $2 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit

Explanation / Answer

Prepare entries :

Date accounts & explanation debit credit Nov 1 Dividend a/c (83000*2) 166000 Dividend payable a/c 166000 (To record dividend declared) Dec 31 Dividend payable a/c 166000 Cash a/c 166000 (To record dividend paid)

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