On March 15, American Eagle declares a quarterly cash dividend of $0.110 per share payable on April 13 to all stockholders of record on March 30. Required: Record American Eagle's declaration and payment of cash dividends for its 220 million shares.

The journal entries are shown below:

1. Retained earning A/c Dr $24.2 million

To Dividend payable A/c $24.2 million

(Being cash dividend declared)

2. Dividend payable A/c Dr $24.2 million

To Cash A/c $24.2 million

(Being cash dividend is paid)

Th computation is shown below:

= Number of shares * cash dividend per share

= 220 million shares * $0.110 per share

= $24.2 million