Question

November 12 - Declared a total cash dividend of $45,000 for stockholders of record November 20 payable on December 1. Record the journal entries required by these events. If no entry is required, select "No Entry" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank. Nov. 12 Nov. 20 Dec. 1 Briefly describe the significance of November 20. It represents the date .

Answer 1

Following are the journal entries recorded;

November 12

Debt: Cash Dividend = $45,000

Credit: Dividend Payable = $45,000

Declaration of Cash Dividend is recorded

November 20

No Entry is recorded

December 01

Debt: Dividend Payable = $45,000

Credit: Cash = $45,000

Cash Dividend Payment recorded

The significance of date November 20 is to record the dividend date, the organization regulates the eligibility of the shareholder to collect the dividend