Entries for Cash Dividends The declaration, record, and payment dates in connection with a cash dividend of $66,000 on a corporation's common stock are October 1, November 7, and December Journalize the entries required on each date. If no entry is required, choose "No Entry Required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

Answer:

When the dividend is declared, the company needs to record the declaration of the cash dividends involving a decrease (debit) to Retained Earnings (a stockholders’ equity account) and an increase (credit) to Cash Dividends Payable (a liability account).

The date of record determines which shareholders will receive the dividends. There is no journal entry recorded; that is the date on which the company creates a list of the stockholders that will receive dividends.

The date dividends payments are prepared and sent to shareholders who owned stock on the date of record, the related journal entry is a fulfillment of the obligation established on the declaration date; it reduces the Cash Dividends Payable account (with a debit) and the Cash account (with a credit).

JOURNAL ENTRY REQUIRED: