Question

Brief Exercise 11-5

Bramble Corp. has 9,500 shares of common stock outstanding. It declares a $2 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

Answer 1

Answer

--Entries would be:

Date	Accounts title	Debit	Credit
01-Nov	Cash Dividend/Dividend [or choose "retained earnings" if option not available]	$19,000.00
	Dividends payable [9500 shares x $ 2]		$19,000.00
	(to record declaration of dividend)
31-Dec	Dividends payable	$19,000.00
	Cash		$19,000.00
	(Dividend paid)