On March 1, the board of directors declared a cash dividend of $0.75 per common share to shareholders of record on March 10, payable March 31. There were 131,000 shares issued and outstanding on March 1 and no additional shares had been issued during the month. Record the entries for March 1, 10, and 31. The cash dividends account is used.

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Business

Gisselle Sosa

1 July, 21:38

On March 1, the board of directors declared a cash dividend of $0.75 per common share to shareholders of record on March 10, payable March 31. There were 131,000 shares issued and outstanding on March 1 and no additional shares had been issued during the month. Record the entries for March 1, 10, and 31. The cash dividends account is used.

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Shayna Blanchard · Answer 1

Answer and Explanation:

The Journal Entry is shown below:-

Mar-01

Cash dividends Dr, $98,250

(131,000 * $0.75)

To Dividends payable Dr, $98,250

(Being declaration of dividends is recorded)

Mar-10

No entry required

Mar-31

Dividends payable Dr, $98,250

To Cash $98,250

(To record payment of dividends)