Chapter 11, Problem 15E

Journalizing Cash Dividends

Bogscraft Company has outstanding 60,000 shares of $10 par value common stock and 25,000 shares of $20 par value preferred stock (8 percent). On February 1, the board of directors voted in favor of an 8 percent cash dividend on the preferred stock. The cash dividends were paid on March 15. The company closed its books at its fiscal year-end, June 30.

Required:

Prepare journal entries to record the events on (a) February 1, (b) March 15, and (c) June 30.