The dates of importance in connection with a cash dividend of $81,000 on a corporation’s common stock are January 15 and March 15. Required:   Journalize the entries required on each date. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction.\

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question
The dates of importance in connection with a cash dividend of $81,000 on a corporation’s common stock are January 15 and March 15.
Required:
 

Journalize the entries required on each date. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction.\

 

 

CHART OF ACCOUNTS
 
General Ledger
  ASSETS
110 Cash
120 Accounts Receivable
131 Notes Receivable
132 Interest Receivable
141 Merchandise Inventory
145 Supplies
151 Prepaid Insurance
181 Land
191 Buildings
192 Accumulated Depreciation-Building
193 Equipment
194 Accumulated Depreciation-Equipment
  LIABILITIES
210 Accounts Payable
221 Notes Payable
226 Interest Payable
231 Cash Dividends Payable
236 Stock Dividends Distributable
241 Salaries Payable
261 Mortgage Note Payable
  EQUITY
311 Preferred Stock
312 Paid-In Capital in Excess of Par-Preferred Stock
321 Common Stock
322 Paid-In Capital in Excess of Par-Common Stock
323 Paid-In Capital in Excess of Stated Value-Common Stock
331 Treasury Stock
332 Paid-In Capital from Sale of Treasury Stock
340 Retained Earnings
351 Cash Dividends
352 Stock Dividends
390 Income Summary
  REVENUE
410 Sales
610 Interest Revenue
  EXPENSES
510 Cost of Merchandise Sold
515 Credit Card Expense
520 Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Rent Expense
534 Insurance Expense
535 Supplies Expense
536 Organizational Expenses
561 Depreciation Expense-Building
562 Depreciation Expense-Equipment
590 Miscellaneous Expense
710 Interest Expense
 
 
JOURNAL
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
1
2
3
4
Transcribed Image Text:JOURNAL DATE DESCRIPTION POST. REF. DEBIT CREDIT 1 2 3 4
Expert Solution
Step 1
Date           Description Post Ref Debit Credit
Jan -15

        Date of Declaration

Retaining Earning----DR  

            To Dividends Payable         

  $81000

 

 

$81000

Feb-15

                Date of Record

 

                 No  Entry

     
Mar-15

           Date of Payment

Dividends Payable-----------DR

          To Cash

  $81000

 

 

$81000

 

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Financial Statements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education