qs 13 - 6 (algo) accounting for cash dividends lo p2\nprepare journal entries to record the following…

qs 13 - 6 (algo) accounting for cash dividends lo p2\nprepare journal entries to record the following transactions for emerson corporation.\nnote: if no entry is required for a transaction/event, select \no journal entry required\ in the first account field.\njuly 15 declared a cash dividend payable to common stockholders of $169,000.\naugust 15 date of record is august 15 for the cash dividend declared on july 15.\naugust 31 paid the dividend declared on july 15.\njournal entry worksheet\n1 2 3\nrecord the declaration of a cash dividend payable to common stockholders.\nnote: enter debits before credits.\ndate general journal debit credit\njuly 15

qs 13 - 6 (algo) accounting for cash dividends lo p2\nprepare journal entries to record the following transactions for emerson corporation.\nnote: if no entry is required for a transaction/event, select \no journal entry required\ in the first account field.\njuly 15 declared a cash dividend payable to common stockholders of $169,000.\naugust 15 date of record is august 15 for the cash dividend declared on july 15.\naugust 31 paid the dividend declared on july 15.\njournal entry worksheet\n1 2 3\nrecord the declaration of a cash dividend payable to common stockholders.\nnote: enter debits before credits.\ndate general journal debit credit\njuly 15

Answer

Explanation:

Step1: Record declaration of dividend

When a cash - dividend is declared, we debit the Retained Earnings account to reduce the amount of earnings available for distribution and credit the Dividends Payable account to recognize the liability to pay the dividend.

Date General Journal Debit Credit
July 15 Retained Earnings $169,000
Dividends Payable $169,000

Step2: Date of record

The date of record (August 15) is used to determine which stockholders are entitled to receive the dividend. No journal entry is required on this date.

Date General Journal Debit Credit
August 15 No journal entry required

Step3: Record payment of dividend

When the dividend is paid on August 31, we debit the Dividends Payable account to reduce the liability and credit the Cash account to record the outflow of cash.

Date General Journal Debit Credit
August 31 Dividends Payable $169,000
Cash $169,000

Answer:

Date General Journal Debit Credit
July 15 Retained Earnings $169,000
Dividends Payable $169,000
August 15 No journal entry required
August 31 Dividends Payable $169,000
Cash $169,000