Question

qs 13 - 6 (algo) accounting for cash dividends lo p2
prepare journal entries to record the following transactions for emerson corporation.
note: if no entry is required for a transaction/event, select
o journal entry required\ in the first account field.
july 15 declared a cash dividend payable to common stockholders of $169,000.
august 15 date of record is august 15 for the cash dividend declared on july 15.
august 31 paid the dividend declared on july 15.
journal entry worksheet
1 2 3
record the declaration of a cash dividend payable to common stockholders.
note: enter debits before credits.
date general journal debit credit
july 15

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
	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

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
	Cash		$169,000

Answer:

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