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20 November, 16:24

Martinez Corp. has 7,900 shares of common stock outstanding. It declares a $5 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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  1. 20 November, 18:33
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    Nov. 1

    Dr Cash Dividend 39,500

    Cr Dividends Payable 39,500

    Dec. 31

    Dr Dividends Payable 39,500

    Cr Cash 39,500

    Explanation:

    Martinez Corp Journal entries

    Nov. 1

    Dr Cash Dividend 39,500

    (7,900 shares of common stock * 5 per shares)

    Cr Dividends Payable 39,500

    Dec. 31

    Dr Dividends Payable 39,500

    Cr Cash 39,500
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