cash dividend of $1 per share on its 800,000 outstanding shares of common stock.? - Yahoo! Small Business

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corporation was formed on Jan 1. The corporate charter authorized 100,000 shares of $10 par value common st?

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cash dividend of $1 per share on its 800,000 outstanding shares of common stock.?

cash dividend of $1 per share on its 800,000 outstanding shares of common stock. The dividend is payable on October 12 to the stockholders of record on September 30. Give the journal entries necessary on September 15, September 30, and October 12 20XX.

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Since the board of directors have declared and approved the dividend, and since there is an expectation it will be paid, the journals will be passed as follows : Sep 15 Dr Retained Earnings $800,000 Cr Dividends Payable $800,000 (To book dividends declared of $800,000) Sep 30 Just elaborate on Sept 30 by saying there will be no journal entry on this day relating to the dividends. You will just be compiling the list of shareholders at the end of the business day to finalise who will be paid on Oct 12. Oct 12 Dr Dividends Payable $800,000 Cr Cash $800,000 (To book payment of dividends that were declared on Sept 15 of $800,000).

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