Ask Question
25 April, 07:04

Hemingway Corporation has 100,000 shares of common stock issued and outstanding. At the meeting of the board of directors on December 1, the board voted to declare a cash dividend of $5 per share to be paid on December 31, to shareholders of record as of December 16.

Required:

Complete the necessary journal entry on the date of declaration by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

+3
Answers (1)
  1. 25 April, 09:11
    0
    The required journal entries on declaration date is:

    Dr Retained earnings $500,000

    Cr Dividends payable $500,000

    Explanation:

    The required entries required on declaration date means that the company has an obligation of dividends payable to shareholders on 31st December, which amount to $500,000 (100000*$5), hence the required entries as follows:

    Dr Retained earnings $500,000

    Cr Dividends payable $500,000

    No entries are required on record date.

    Finally the following entries are required on payment date:

    Dr Dividends payable $500,000

    Cr Cash $500,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Hemingway Corporation has 100,000 shares of common stock issued and outstanding. At the meeting of the board of directors on December 1, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers