Two billion times a day, Procter &Gamble; (P&G;) brands touch the lives of peopl
ID: 2471979 • Letter: T
Question
Two billion times a day, Procter &Gamble; (P&G;) brands touch the lives of people around the world. The company has one of the largest and strongest portfolios of trusted, quality brands, including Pampers, Tide, Bounty, Pringles, Folgers, Charmin, Downy, Crest, and Clairol Nice 'n Easy. The P&G; community consists of nearly 98,000 employees working in almost 80 countries worldwide. The company has 5,001 million shares of common stock authorized and 3,009 million shares issued and outstanding. Par value is $1 per share. In 2012, the company issued the following press release CINCINNATI (Friday, April 13, 2012)-Today, the Procter &Gamble; Company announced that its Board of Directors declared an increase in the quarterly dividend from S0.538 to $0.588 per share on its Common Stock payable on May 15, 2012, to Common Stock shareholders of record at the close of business on April 27, 2012. This represents a 7 percent increase compared to the prior quarterly dividend. P&G; has been paying a dividend for 122 consecutive years since its incorporation in 1890. This marks the 56th consecutive year that the Company has increased the dividend. Required: Prepare journal entries as appropriate for each date mentioned in the press release. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars not in millions (i.e., 1,000,000 not 1.0).)Explanation / Answer
Journal
April 13
Retained earnings ...............................................Dr. $1769292000
Cash Dividend payable................................................................Cr. $1769292000
(dividend declared)
April 27
No entry will be passed for the record date
May 15
Cash Dividend Payable...............................................................Dr. $1769292000
Cash..................................................................................................................Cr. $1769292000
(dividend paid)
Note: dividend amount = 0.588*3009*1000000 = $17692920000