Mapleleaf Industries declared a $0.85 per share cash dividend. The company has 130,000 shares authorized, 51,000 shares issued, and 48,000 shares of common stock outstanding. What is the journal entry to record the dividend declaration

Mapleleaf Industries

Journal Entry

Debit Cash Dividend $40,800

Credit Dividends Payable $40,800

To record the declaration of $0.85 per share cash dividend.

Explanation:

This journal entry shows the two accounts involved and how they are recorded when a cash dividend is declared (declaration date).

Calculation of cash dividends is based on 48,000 shares of common stock outstanding and not on the issued shares nor the authorized.  Usually, dividends are only payable to shareholders of record, who appear on the register of the company as holders of the shares on the specified date (date of records).

So, the divided equals $40,800 (48,000 x $0.85).

Debit Dividends and credit Dividends Payable for $40,800 was recorded in the journal entry as dividend declaration

Explanation:

Dividends are distribution (share or proportion) of profits paid to shareholders of a company from a company earnings. Dividends are not represented in the companies income statement. Dividends are only paid to outstanding shares.

Dividends = outstanding shares × cash dividend

Dividends = $0.85 per share cash dividend × 48,000 shares of common stock outstanding. = $40800

Therefore a Debit Dividends and credit Dividends Payable for $40,800 was recorded in the journal entry as dividend declaration

answerstop plates; security tracking of office property

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.