Divine Apparel has 2,600 shares of common stock outstanding. On October 1, the company declares a $0.25 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. Record all transactions on the appropriate dates for cash dividends.

The journal entries are shown below:

On October 1

Dividend Declared A/c Dr $650 (2,600 shares * $0.25)

To Dividend payable A/c $650

(Being dividend is declared)

On October 15

No entry is required

On October 31

Dividend payable A/c Dr $650

To Cash A/c $650

(Being dividend is paid for cash)