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.

Answer and Explanation:

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


Learn more about this topic:

Loading...
Cash Dividends & Dividend Payment

from Finance 101: Principles of Finance

Chapter 16 / Lesson 1
4.8K

Related to this Question

Explore our homework questions and answers library