Example 7: Dybala Inc. declared a cash dividend of $2 per share on its 3 million outstanding shares. The dividend was declared on August 1 and payable on September 9 to all stockholders of record on August 15. Prepare necessary journal entries on all three dates. 1. On declaration date (August 1) 2. On record date (August 15) 3. On payment date (September 9) Example 8: At December 31, 2019, R Inc. owns available-for-sale securities with cost of $900,000, which equals their market value. On September 21, 2020, when the market value of the securities was $1,200,000, R Inc. declared a property dividend whereby the securities will be distributed on October 23 to stockholders of record on October 8. - Prepare journal entries to record the property dividend. Example 9: On April 20, K Corp. declares dividend of $500,000 payable on June 1. Of this amount, $100,000 should be considered as return on capital. - Journal Entries