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. 1Retained earnings A/c Dr.
To Dividend payable A/c (3000 * 1)
3000
3000
Dec. 15 No entry. - - Dec. 31Dividend payable A/c Dr.
To Cash A/c (3000 * 1)
3000
3000
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