A recent annual report for Malestrom Inc., disclosed that the company declared a

Question

A recent annual report for Malestrom Inc., disclosed that the company declared and paid dividends on commor stock in the amount of $2.00 per share. During the year, Malestrom had 1,019,000,000 authorized shares of common stock and 191,390,000 issued shares. There is no treasury stock. Required Assume Malestrom declared the entire dividend ($2.00 per share) on February 20 and subsequently paid the dividend on March 1. Prepare a journal entry to record the declaration and payment of dividends. (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).) View transaction list Journal entry worksheet Record the declaration of dividends Note: Enter debits before credits. Date General Journal Debit Credit February 20 Record entry Clear entry View general journal

Explanation / Answer

Feb-20 Retained earnings 382780000 =191390000*2         Dividends payable 382780000 Mar-01 Dividends payable 382780000         Cash 382780000

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