Ask Question
BusinessBusiness
26 June, 04:40

On May 20, the board of directors for Auction declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 502,000 shares of stock outstanding. Closing entries are recorded on July 31. Prepare any necessary journal entries for each date. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) A) May 20th, Record the entry on the date of declaration for a cash dividend of 50 cents per share payable on the 513,000 shares of stock outstanding. B) June 14th, Record the entry on the date of record for a cash dividend of 50 cents per share payable on the 513,000 shares of stock outstanding. C) July 14th, Record the entry on the date of payment for the cash dividend. D) July 31st, Record the entry to close the dividend account to retained earnings.

+2
Answers (1)
  1. 26 June, 06:01
    0
    The journal entries are shown below:

    We assume the shares outstanding is 513,000 shares

    On May 20

    Dividend A/c Dr $256,500 (513,000 shares * $0.50)

    To Dividend payable A/c $256,500

    (Being cash dividend declared)

    On June 14

    No entry

    On July 14

    Dividend payable A/c Dr $256,500

    To Cash A/c $256,500

    (Being the payment of cash dividend is recorded)

    On July 31

    Retained earning A/c Dr $256,500

    To Dividend A/c $256,500

    (Being cash dividend declared)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “On May 20, the board of directors for Auction declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. ...” 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
You Might be Interested in
Kenneth was walking past a closed office door when he heard a top company executive yell, Sell my stock before the whole company goes under.
Answers (1)
Real data vs nominal data what is the difference
Answers (1)
At the project closure step, which activity is performed? A. documenting learning from the project B. documenting the project risks C. selecting the team members D. drafting the project proposal document
Answers (1)
Reactive Power Generation has the following capital structure. Its corporate tax rate is 21%. Security Market Value Required Rate of Return Debt $ 20 million 6 % Preferred stock 10 million 8 Common stock 50 million 12 What is its WACC?
Answers (1)
Why is it important that money be divisible
Answers (1)
New Questions in Business
Explain what is meant by market research.
Answers (1)
Jean, a restaurant critic, publishes a review in a national daily that the sandwiches served at his friend's deli are usually not fresh. Tom, the owner of the deli, notices a significant decrease in customers after the review gets published.
Answers (1)
Why did the Soviet Union experience many surpluses and shortfalls? A) The labor force wasn't well educated B) The cold climate made farming hard C) Central planners could not manage every detail D) The country depended on imports to obtain resources.
Answers (1)
A hospitality operation has sales revenue of $462,000 with variable cost averaging 44%. Fixed costs are $188,000. The owner wants a net income after tax of $50,400 based on a tax rate of 28%. a.
Answers (1)
True or false fdr was eager to use deficit spending to end the economic crisis.
Answers (1)
Home » Business » On May 20, the board of directors for Auction declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 502,000 shares of stock outstanding.
Sign Up Forgot Password?