Pronghorn Corp has 8,300 shares of common stock outstanding. It declares a $3 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.

Question

Sheridan

Business

10 February, 08:20

Pronghorn Corp has 8,300 shares of common stock outstanding. It declares a $3 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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Bart · Answer 1

dividends 24,900

dividen payable 24,900

to record declaration of dividends

dividend payable 24,900

cash 24,900

to recored payment of dividends

Explanation:

amount of dividends:

8,300 shares x $3 per share = 24,900

dividends 24,900

dividend payable 24,900

to record declaration of dividends

we post the dividends declared and we post the payable

dividend payable 24,900

cash 24,900

to recored payment of dividends

we decrease the cash account and write-off the dividend payable