Question
The constitution of Rosewood Ltd requires approval of final dividends by shareholders at the Annual General Meeting before these can be declared or paid. Rosewood
The constitution of Rosewood Ltd requires approval of final dividends by shareholders at the Annual General Meeting before these can be declared or paid. Rosewood Ltd has a 30 June year end. What is the accounting treatment or general journal entries for the following statement?
On 5 July 2021, the directors recommended a final dividend of $250 000 from retained earnings.
Group of answer choices
There is no entry as the dividend has not been declared, only recommended
Dr. Cash
Cr. Retained earnings
Dr. Retained earnings
Cr. Cash
Dr. Retained earnings
Cr. Dividend payable
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
9780135811603
