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20. Northwest Clothing Supply has 3,000 shares of common stock outstanding. Plea

ID: 2586852 • Letter: 2

Question

20. Northwest Clothing Supply has 3,000 shares of common stock outstanding. Please make the proper entries to record their payment of dividends. If no entry, write "No Entry". (Page 585)
1-Dec Declares a cash dividend of $1 per share to all shareholders of record on on December 15th.

15-Dec Date of record
31-Dec Pays the cash dividend declared on December 1
20. Northwest Clothing Supply has 3,000 shares of common stock outstanding. Please make the proper entries to record their payment of dividends. If no entry, write "No Entry". (Page 585)
1-Dec Declares a cash dividend of $1 per share to all shareholders of record on on December 15th.

15-Dec Date of record
31-Dec Pays the cash dividend declared on December 1

1-Dec Declares a cash dividend of $1 per share to all shareholders of record on on December 15th.

15-Dec Date of record
31-Dec Pays the cash dividend declared on December 1 15-Dec Date of record
31-Dec Pays the cash dividend declared on December 1

Explanation / Answer

Answer :-   Journal entries

Retained earnings A/c Dr.

To Dividend payable A/c (3000 * 1)

3000

3000

Dividend payable A/c Dr.

To Cash A/c (3000 * 1)

3000

3000

Date General journal Debit ($) Credit ($) Dec. 1

Retained earnings A/c Dr.

To Dividend payable A/c (3000 * 1)

3000

3000

Dec. 15 No entry. - - Dec. 31

Dividend payable A/c Dr.

To Cash A/c (3000 * 1)

3000

3000