On March 15, American Eagle declares a quarterly cash dividend of $0.105 per share payable on April 13 to all stockholders of record on March 30. Required: Record American Eagle's declaration and payment of cash dividends for its 214 million shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in dollars, not in millions (i. e. $5.5 should be entered as 5,500,000).)

Question

Laila Gomez

Business

22 February, 10:15

On March 15, American Eagle declares a quarterly cash dividend of $0.105 per share payable on April 13 to all stockholders of record on March 30. Required: Record American Eagle's declaration and payment of cash dividends for its 214 million shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in dollars, not in millions (i. e. $5.5 should be entered as 5,500,000).)

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Kamora Brewer · Answer 1

March 15 Debit Credit

Dividends $22,470,000

Dividends Payable $22,470,000

March 30 No entry

April 13

Dividends Payable $22,470,000

Cash $22,470,000

Explanation:

In order to record American Eagle's declaration and payment of cash dividends for its 214 million shares first we would require to calculate the dividends as follows:

Dividends=214,000,000 shares*$0.105

Dividends=$22,470,000

Therefore, the journal entries would be the following:

March 15 Debit Credit

Dividends $22,470,000

Dividends Payable $22,470,000

March 30 No entry

April 13

Dividends Payable $22,470,000

Cash $22,470,000