Question

The declaration, record, and payment dates in connection with a cash dividend of $101,600 on a corporation's common stock are July 9, August 31, and October 1. Journalize the entries required on each date. If no entry is required, simply skip to the next transaction. Refer to the Chart of Accounts for exact wording of account titles.

Answer 1

Date	Accounts title and explanation	Debit	Credit
July 9	Cash dividends	$101,600
	...cash dividends payable		$101,600
	(To record the dividend declaration)
August 31	No entry required
October 1	Cash dividends payable	$101,600
	...Cash		$101,600
	(To record the dividend payment)