Question

Divine Apparel has 2,200 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.

Required:

a. Record all transactions on the appropriate dates for cash dividends.

Answer 1

October 1

Dr Dividends 1,100

Cr Dividends payable 1,100

October 15

No journal entry required 0

No journal entry required 0

October 31

Dr Dividends payable 1,100

Cr Cash 1,100

Step-by-step explanation:

Divine Apparel

General Journal

October 1

Dr Dividends 1,100

Cr Dividends payable 1,100

October 15

No journal entry required 0

No journal entry required 0

October 31

Dr Dividends payable 1,100

Cr Cash 1,100

Dividends: 2,200 shares × $0.50 = $1,100

Dividends Payable: 2,200 shares × $0.50 = $1,100