On April 15, the board of directors for AuctionPro declared a cash dividend of 40 cents per

Question:

On April 15, the board of directors for AuctionPro declared a cash dividend of 40 cents per share payable to shareholders of record on May 20. The dividends will be paid on June 14. The company has 500,000 shares outstanding. Prepare any necessary journal entries for each date.

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...

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