Radical Rex Mining Company declared, on April 20, a dividend of $700,000 payable on June 1. Of

Question:

Radical Rex Mining Company declared, on April 20, a of $700,000 payable on June 1. Of this amount, $125,000 is a return of capital. Prepare the April 20 and June 1 entries for Radical Rex.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...