Question

Divine Apparel has 3,900 shares of common stock outstanding. On October 1, the company declares a $0.50 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. Record all transactions on the appropriate dates for cash dividends. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Answer 1

Answer:

1. October 1

Dividends (Cr)      1950

Dividend Payable (Dt)        1950

2. October 15

No journal entry required

3. Record the payment of cash dividends

Dividend Payable (Cr)  1950

Cash  (Dt)   1950

Explanation:

(3,900 shares of common stock outstanding) *(declared  $0.50 per share dividend) = 1950