# Jounalize these transactions: Declared a 5% common stock dividend when the market value of the...

## Question:

Jounalize these transactions:

Declared a 5% common stock dividend when the market value of the stock was $6.00 per share. Declared total cash dividends of$6,000.

## Dividend Declared:

The dividend is declared by the board of directors. When the declaration of the dividend is done, then it becomes the liabilities of the company and the dividend is paid from the retained earnings.

Date Particular Debit $Credit$
Retained Earning a/c Dr 6,000
To, Dividend payable a/c 6,000
(Declared dividend)