Divine Apparel has 3,900 shares of common stock outstanding. On October 1, the company declares a $0.50 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Question

Johnathon Hunter

Business

19 August, 12:37

Divine Apparel has 3,900 shares of common stock outstanding. On October 1, the company declares a $0.50 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. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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Elise Wilcox · Answer 1

1. October 1

Dividends (Cr) 1950

Dividend Payable (Dt) 1950

2. October 15

No journal entry required

3. Record the payment of cash dividends

Dividend Payable (Cr) 1950

Cash (Dt) 1950

Explanation:

(3,900 shares of common stock outstanding) * (declared $0.50 per share dividend) = 1950