Divine Apparel has 4,000 shares of common stock outstanding. On October 1, the c

Question

Divine Apparel has 4,000 shares of common stock outstanding. On October 1, the company declares a $3.10 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.

Record all transactions on the appropriate dates for cash dividends. (If no journal entry is required, select for a particular transaction "No journal entry required" in the first account field.)

Divine Apparel has 4,000 shares of common stock outstanding. On October 1, the company declares a $3.10 per share dividend to stockholders of record on October 15. The dividend is paid on October 31.

Explanation / Answer

Hi,

Please find the answer as follows:

October 1:

Retained Earnings/Dividends (4000*3.10) Dr. 12400

Dividends Payable Cr. 12400

October 15

No Journal Entry is Required

October 31

Dividends Payable Dr. 12400

Cash Cr. 12400

Thanks.

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