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Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has

Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 12,000 shares but 2,000 shares are held as treasury shares. The company pays the dividend on December 14.

Treasury Stock

Building Common Stock
Additional Paid-in Capital from Common Stock Cash Land
Retained Earnings Common Stock Dividend Distributable Cash Dividends Payable
Preferred Stock Equipment Additional Paid-in Capital from Preferred Stock

What is the journal entry to record the declaration of this dividend?

  • Nov. 12 - Declared a cash dividend of $1.00 per common stock share:
  • DR
    CR
  • Dec. 14 - Payment of the cash dividend:
  • DR
    CR

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