Chapter 11, Problem 11.7BE

To determine

Cash dividends: The amount of cash provided by a corporation out of its distributable profits to its shareholders as a return for the amount invested by them is referred as cash dividends.

Declaration date: The date on which the board of directors of a corporation announces officially to distribute the dividends to its shareholders is referred as declaration date.

Date of record: The date on which the company verifies the ownership of shares of the shareholders entitled to receive the dividends declared, is referred as date of record. No entry is recorded on this date.

Payment date: The date on which the company makes payments for the cash dividends declared to its shareholders is referred as payment date.

To prepare: the journal entry for the declaration of cash dividend of Corporation G.