Journal entries associated with a cash dividend are usually made on which of the following dates?

Question

BlackTom AI · Accepted Answer

The question asks about the dates on which journal entries for a cash dividend are typically made. 
Option 1: 'Record date and payment date.' The record date is when the company determines which shareholders are eligible to receive the dividend; there is usually no journal entry on this date related to cash dividends, since no liability or payment occurs yet. The payment date, however, would involve a journal entry to record the cash outflow, but pairing it with the record date makes this option inaccurate for the common two-step journal entry process. 
Option 2: 'Payment date only.' If you only record on the payment date, you neglect the recognition of the dividend liability that occurs at declaration. Standard practice requires recognizing a liability at declaration, so this option is incomplete. 
Option 3: 'Declaration date and payment date.' This option aligns with typical accounting for cash dividends: at declaration, the company creates a liability (Dividends Payable) and reduces Retained Earnings; at payment, the liability is settled by cash. This reflects the two-stage process of recognizing a dividend obligation and then settling it. 
Option 4: 'Declaration date and record date.' While the declaration date is correct for creating the liability, the record date is about which shareholders are entitled to receive the payout and does not involve a cash dividend journal entry. Therefore, pairing declaration with the record date omits the actual cash payment event. 
In sum, the only choice that matches the standard journal-entry sequence for cash dividends—recognizing the liability on declaration and settling it on payment—is Option 3: 'Declaration date and payment date.'

COMM_V 320 DD4 2025W1 Part A Final Exam December 15, 2025 Part A Multiple Choice - 30 minutes

Journal entries associated with a cash dividend are usually made on which of the following dates?

查看解析

登录即可查看完整答案

类似问题

Declared and paid $15,000 cash dividends to shareholders.

When a company declares a cash dividend, the recording will be Debit [ Select ] Retained Earnings Dividend Expense Profit and Loss Dividend Payable Cash and Credit [ Select ] Retained Earnings Account Payable Dividend Expense Dividend Payable Cash ..

On 15 July 2023, Linh Do Accounting Firm paid a cash dividend that had been declared prior to the end of its June 30, 2023 financial year. The entry to pay the dividends includes a debit to:

When a company declares a cash dividend, the recording will be Debit Retained Earnings and Credit Dividend Payable ..

On 1 June 2022, Linh Do Accounting Company declared a $50 000 cash dividend to be distributed to its ordinary shareholders of record on June 15, 2022. The dividend will be paid on 15 July 2022. The required journal entry on 1 June includes a:

When a company declares a cash dividend, the recording will be Debit [ Select ] Dividend Expense Retained Earnings Dividend Payable Cash Profit and Loss and Credit [ Select ] Account Payable Retained Earnings Cash Dividend Expense Dividend Payable ..

The charter of a corporation provides for the issuance of 100,000 shares of common stock. Assume that 60,000 shares were originally issued and 10,000 were subsequently reacquired. What is the amount of cash dividends to be paid if a $2-per-share dividend is declared?

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单