estion 14 14) On November 1, 2015, Oster Company declared a dividend of $3.00 pe

Question

estion 14 14) On November 1, 2015, Oster Company declared a dividend of $3.00 per share. Oster Company has 20,000 preferred shares. The date of record is November 15, and the payment date is November 30, 201 date of record? A) No journal entry is made on the date of record B) The liability must be recorded on the date of record C) Cash is disbursed to shareholders on the date of record D) The company transfers cash to a brokerage firm on the date of record Question 15 15) On November 1, 2015. Oster Company declared a dividend of $3.00 per share Oster Company has 20 000 s no preferred stock The date of record is November 15, and the payment date is November 30 2015 Whic November 30? h of the ommon $60 000 ed Earnings $60.000 and credit Dividends Paya

Explanation / Answer

Please note that there There are twi entries are posted for Dividend - Fitst when the Dividend is declared and second when the dividend is paid. In the question journal entry for record date of dividend is asked, whcih will be Nil.

So Option A is correct which says there will be no journal entry to be posted as on the date of record.

Record date is the date which the company set to identify the shareholders who are entitled to get dividend.

Please let me know if you need anythng else.

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