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18 December, 03:49

Which of the following is the appropriate general journal entry to record the declaration of cash dividends?

A. Cash Dividends

Cash

B. Dividends Payable

Cash

C. Paid-in Capital

Dividends Payable

D. Cash Dividends

Dividends Payable

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Answers (1)
  1. 18 December, 03:57
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    D. Cash Dividends

    Dividends Payable

    Explanation:

    The journal entry to record the declaration of cash dividends is shown below:

    Cash dividend A/c Dr

    To Dividend payable A/c

    (Being the cash dividend is declared)

    The treatment of dividend is that it is deducted and shown in the statement of the retained earnings

    Treatment:

    The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
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