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17 May, 13:11

Divine Apparel has 2,200 shares of common stock outstanding. On October 1, the company declares a $0.50 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.

Required:

a. Record all transactions on the appropriate dates for cash dividends.

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Answers (1)
  1. 17 May, 15:05
    0
    October 1

    Dr Dividends 1,100

    Cr Dividends payable 1,100

    October 15

    No journal entry required 0

    No journal entry required 0

    October 31

    Dr Dividends payable 1,100

    Cr Cash 1,100

    Explanation:

    Divine Apparel

    General Journal

    October 1

    Dr Dividends 1,100

    Cr Dividends payable 1,100

    October 15

    No journal entry required 0

    No journal entry required 0

    October 31

    Dr Dividends payable 1,100

    Cr Cash 1,100

    Dividends: 2,200 shares * $0.50 = $1,100

    Dividends Payable: 2,200 shares * $0.50 = $1,100
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