Marigold Corp. has 7,800 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend

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Business

Eileen Cantu

14 February, 17:29

Marigold Corp. has 7,800 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend

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Kamryn · Answer 1

November 1

Dividend $7,800 (debit)

Shareholders for Dividends $7,800 (credit)

December 31

Shareholders for Dividends $7,800 (debit)

Cash $7,800 (credit)

Explanation:

November 1

Dividend $7,800 (debit)

Shareholders for Dividends $7,800 (credit)

Recognize an Equity Item - Dividend and also recognize a liability - Shareholders for Dividends

December 31

Shareholders for Dividends $7,800 (debit)

Cash $7,800 (credit)

De-recognize the Liability-Shareholders for Dividends and also de-recognize the Cash Asset