On May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 504,000 shares of stock outstanding. Closing entries are recorded on July 31. Prepare any necessary journal entries for each date. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the entry on the date of declaration for a cash dividend of 50 cents per share payable on the 504,000 shares of stock outstanding.Record the entry on the date of record for a cash dividend of 50 cents per share payable on the 504,000 shares of stock outstanding.Record the entry on the date of payment for the cash dividend. Record the entry to close the dividend account to retained earnings.

Introduction: Journals: Recording of a business transactions in a chronological order. First step…

Answered: On May 20, the board of directors for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On May 20, the board of directors for Auction.com declared a cash dividend of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 504,000 shares of stock outstanding. Closing entries are recorded on July 31. Prepare any necessary journal entries for each date. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Record the entry on the date of declaration for a cash dividend of 50 cents per share payable on the 504,000 shares of stock outstanding.
Record the entry on the date of record for a cash dividend of 50 cents per share payable on the 504,000 shares of stock outstanding.
Record the entry on the date of payment for the cash dividend.
- Record the entry to close the dividend account to retained earnings.

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