Question

Prepare journal entries to record the following transactions for Emerson Corporation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) July 15 Declared a cash dividend payable to common stockholders of $165,000. Aug. 15 Date of record is August 15 for the cash dividend declared on July 15. Aug. 31 Paid the dividend declared on July 15.

Answer 1

Answer:

The journal entries are as follows:

(i) On July 15,

Retained earnings A/c Dr. $165,000

        To Dividends payable               $165,000

(To record the declaration of dividend on common stock)

(ii) No journal entry would be passed on the date of record for the cash dividends.

(iii) On August 31,

Dividend payable A/c Dr. $165,000

      To cash                                       $165,000

(To record the cash paid for the dividend)

Answer 2

Answer:

Journal Entry

Explanation:

The Journal entry is shown below:-

July 15

Retained earning Dr,         $165,000

        To Dividend payable              $165,000

(Being dividend declared on common stock is recorded)

August 15

No Journal Entry is required

August 31

Dividends payable Dr,        $165,000

     To cash                                                $165,000

(Being dividends paid is recorded)