Nutritious Pet Food Company’s board of directors declares a cash dividend of $1.00 per common share on November 12. On this date, the company has issued 12,000 shares but 2,000 shares are held as treasury shares. The company pays the dividend on December 14. Treasury Stock Building Common Stock Additional Paid-in Capital from Common Stock Cash Land Retained Earnings Common Stock Dividend Distributable Cash Dividends Payable Preferred Stock Equipment Additional Paid-in Capital from Preferred Stock What is the journal entry to record the declaration of this dividend? PLEASE NOTE: For accounts having similar accounting treatment (DR or CR), you are to record accounts in the same order as shown in the textbook. You must enter the account names exactly as written above and all whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). Nov. 12 - Declared a cash dividend of $1.00 per common stock share:    DR     CR        Dec. 14 - Payment of the cash dividend: DR     CR

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nutritious Pet Food Company’s 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?

PLEASE NOTE: For accounts having similar accounting treatment (DR or CR), you are to record accounts in the same order as shown in the textbook. You must enter the account names exactly as written above and all whole dollar amounts will be with "$" and commas as needed (i.e. $12,345).

  • 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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