At December 31, the unadjusted trial balance of H&R Tacks reports Dividend Declared of $0 and...

Question:

At December 31, the unadjusted trial balance of H&R Tacks reports Dividend Declared of $0 and Dividends Payable of $0. A $200 dividend was declared on December 27, with payment in cash to occur three weeks later. Prepare the required journal entry. In separate T-accounts for each account, enter the unadjusted balances, post the journal entry, and report the adjusted balance.

Journal Entries and T-Accounts:

Accounting transactions are first recorded in the general journal through journal entries and are then posted to the respective ledger accounts or T-accounts. The debit and credit in a journal entry should always match.

Answer and Explanation:


The journal entry to record dividend declaration is as follows:


Date Account Title Amount($) Amount($)
Dec 27, 20XX Retained earnings $200.00
Dividend payable $200.00
(to record declaration of dividend)


T-account for dividend declaration:


Dividend Payable
Date Amount($) Amount ($) Date
$0.00 Dec 1
Dec 31, 20XX (cl. Bal) $200 $200 Dec 27
Total $200 $200
$200 Op.bal


Dividend Declared
Date Amount($) Amount ($) Date
$0.00 Dec 1
Dec 31 $200 $200 Dec 27
Total $200 $200


Learn more about this topic:

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Understanding Debits and Credits in Accounting

from Accounting 101: Financial Accounting

Chapter 3 / Lesson 6
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