Question

on june 1, the board of directors declares a cash dividend to be paid on june 30 to shareholders of record on june 15. on which date would the company record a credit to the dividends payable account?

Answer 1

The company will post a credit for any dividends due on that day.

What is a journal entry in accounting?

The date, credit and debit amounts, a brief description of the transaction, and associated ledger are included in each journal along with other information about each individual transaction.

A simple accounting entry only debits and credits one account. As a best practice, we recommend using simple journal entries that are easy to understand.

June 1 journal entry explains dividend credit payable account. The following is the journal entry made for the declared on:

Date                                Accounts                                     Debit

1 - June                            dividends                                    xxx

                                       payable dividends

                                       declared dividends  

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