11-9 Recording Dividends [LO 11-3]

On May 20, 2013, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends will be paid on July 14. The company has 500,000 shares of stock outstanding. Prepare any necessary journal entries for each date.

Record the entry on the date of record for a cash dividend of 50 cents per share payable on the 500,000 shares of stock outstanding