Following is a recent Microsoft press release: REDMOND, Wash.—Nov. 29, 2017 — Microsoft Corp. on Wednesday announced that its board of directors declared a quarterly dividend of $0.42 per share. The dividend is payable March 8, 2018, to shareholders of record on Feb. 15, 2018. The ex-dividend date will be Feb. 14, 2018. Prepare the journal entries Microsoft used to record the declaration and payment of the cash dividend for its 7,720 million shares. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i. e., 10,000,000 should be entered as 10).)

Solution:

No       Event            General Journal              Debit        Credit

1            1                 Retained earnings            3,242

                        Cash dividends payable                           3,242

2           2          No journal entry required

3           3             Cash dividends payable      3,242

                                     Cash                                              3,242

Declaration date:

Cash dividends payable (7,720 million shares × $0.42) = $3,242 million

advanced placement tests

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