Question

The declaration, record, and payment dates in connection with a cash dividend of $142,000 on a corporation’s common stock are January 15, February 15, and March 15. Required: Journalize the entries required on each date. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction.

Answer 1

	Journal entries
Date	GENERAL JOURNAL	DEBIT ($)	CREDIT ($)
Jan-15	Retained earnings	142,000.00
	Dividends Payable		142,000.00
	(To record the declaration of dividend)
Feb-15	No entry	0	0
Mar-15	Dividends payable	142,000.00
	Cash		142,000.00
	(To record the dividend payable paid)