Prepare any necessary journal entries for the cash dividend on March 1, April 15, and May 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dineshbhai 

Sunland Developments is authorized to issue 500,000 shares. To date, the company has 179,200 shares issued and 147,100
outstanding. Sunland is considering declaring a dividend to its common shareholders. Management is recommending that the board of
directors consider the following options at the next meeting, scheduled for March 1:
1.
2.
(a)
The board of directors should approve a motion directing the company to pay a dividend of $0.40 per share on May 1 to
shareholders of record on April 15; or
The board should approve a motion directing the company to declare a 10% stock dividend. Sunland would distribute 1
common share for every 10 common shares currently held. The company's common shares are currently selling for $53 per
share.
Your answer is partially correct.
Prepare any necessary journal entries for the cash dividend on March 1, April 15, and May 1. (Credit account titles are
automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No
entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal
entries in the order presented in the problem.)
Date
March 1
April 15
May 1
Account Titles and Explanation
Dividends Payable
Cash
Debit
1000
Credit
Transcribed Image Text:Sunland Developments is authorized to issue 500,000 shares. To date, the company has 179,200 shares issued and 147,100 outstanding. Sunland is considering declaring a dividend to its common shareholders. Management is recommending that the board of directors consider the following options at the next meeting, scheduled for March 1: 1. 2. (a) The board of directors should approve a motion directing the company to pay a dividend of $0.40 per share on May 1 to shareholders of record on April 15; or The board should approve a motion directing the company to declare a 10% stock dividend. Sunland would distribute 1 common share for every 10 common shares currently held. The company's common shares are currently selling for $53 per share. Your answer is partially correct. Prepare any necessary journal entries for the cash dividend on March 1, April 15, and May 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries. Record journal entries in the order presented in the problem.) Date March 1 April 15 May 1 Account Titles and Explanation Dividends Payable Cash Debit 1000 Credit
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