On February 5, 2018 , Superb Rental Corporation's board of directors declared a dividend of $ 0.10 , to be paid on March 18, 2018 , to the shareholders of record as of the close of business on March 9, 2018. Superb has 5,500,000 shares of $ 0.01 par-value common stock authorized with 1,000,000 shares issued and outstanding. The company has no preferred stock.

Required:

1. Record the declaration of the explanations from any journal entries) dividend and the payment of the dividend. Include the proper dates with each journal entry.

Question

Business

Karter Randall

7 December, 10:00

On February 5, 2018 , Superb Rental Corporation's board of directors declared a dividend of $ 0.10 , to be paid on March 18, 2018 , to the shareholders of record as of the close of business on March 9, 2018. Superb has 5,500,000 shares of $ 0.01 par-value common stock authorized with 1,000,000 shares issued and outstanding. The company has no preferred stock.

Required:

1. Record the declaration of the explanations from any journal entries) dividend and the payment of the dividend. Include the proper dates with each journal entry.

+3

Answers (1)

Know the Answer?

Evelin Buck · Answer 1

The answer is given below;

Explanation:

March 9,2018

Retained Earnings 1,000,000*.1 Dr.$100,000

Dividend Payable Cr.$100,000

March 18,2018

Dividend Payable Dr.$100,000

Cash Cr.$100,000