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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:
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DR CR
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