Question

On March 15, American Eagle declares a quarterly cash dividend of $0.060 per share payable on April 13 to all stockholders of record on March 30. Required: Record American Eagle's declaration and payment of cash dividends for its 223 million shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answer in dollars, not in millions (i.e. 5.5 should be entered as 5,500,000).)

Answer 1

Answer:

American Eagle Journal entries

March 15 (Declaration date)

Dr Dividends $13,380,000

Cr Dividends Payable $13,380,000

March 30 (Date of Record)No Entry

April 13 (Payment Date)

Dr Dividends Payable $13,380,000

Cr Cash $13,380,000

Explanation:

March 15 (Declaration date)

Dr Dividends (223 million shares x $0.060)

$13,380,000

Cr Dividends Payable $13,380,000

March 30 (Date of Record)No Entry

April 13 (Payment Date)

Dr Dividends Payable (223 million shares x $0.060) $13,380,000

Cr Cash $13,380,000