10.00 points Following is a recent Microsoft press release: REDMOND, Wash.-March
ID: 2589214 • Letter: 1
Question
10.00 points Following is a recent Microsoft press release: REDMOND, Wash.-March 15, 2014- Microsoft Corp. today announced that its board of directors declared a quarterly dividend of $0.12 per share. The dividend is payable June 12, 2014 to shareholders of record on May 15, 2014 Prepare the journal entries Microsoft used to record the declaration and payment of the cash dividend for its 8,000 million shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) View transaction list Journal entry worksheet 3 Record the journal entry on the declaration date. Note: Enter debits before credits. Event General Journal Debit Credit Record entry Clear entry View general journalExplanation / Answer
1. Journal Entry on Dividend declared date
JOURNAL ENTRY
Date Particulars DEBIT CREDIT
Mar 15, 2014 Retained Earnings Account Dr $ 960.00 mn
To Dividend payable Account $ 960.00 mn
( Being Dividend payable to 8,000 mn share holder @ $ 0.12 each as Dividend declared )
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2. No Journal Entry required on Record date i.e., on May 15, 2014.
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3. Journal Entry on Dividend payable date.
JOURNAL ENTRY
Date Particulars DEBIT CREDIT
Jun 12, 2014 Dividend payable Account Dr $ 960.00 mn
To Cash Account $ 960.00 mn
( Being Cash Dividend paid to 8,000 mn share holders @ $ 0.12 each )
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