The dates of importance in connection with a cash dividend of $150,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date. If no entry is required, select "No Entry Required" and leave the amount boxes blank. Jan. 15 Feb. 15 Mar. 15

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Business

Gloria Kirk

27 February, 11:41

The dates of importance in connection with a cash dividend of $150,000 on a corporation's common stock are January 15, February 15, and March 15. Journalize the entries required on each date. If no entry is required, select "No Entry Required" and leave the amount boxes blank. Jan. 15 Feb. 15 Mar. 15

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Abigail Wilcox · Answer 1

The 3 dates of importance on Cash Dividends are the Date of Declaration, Date of Record, and Date of Payment.

The date of Declaration as inferred is the day the company announces the Dividend. There is an accounting entry for this.

The Date of Record is the day on which the company determines which shareholders are going to get dividends. There is no entry here.

The Date of payment is the day the dividends are disbursed. There is an accounting entry here.

Jan 15

DR Retained Earnings $150,000

CR Cash Dividends Payable $150,000

(To record declaration of Dividends)

Feb 15.

No entry

March 15

DR Cash Dividends Payable $150,000

CR Cash $150,000

(To record payment of Dividends).