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    KAT4's Avatar
    KAT4 Posts: 6, Reputation: 1
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    #1

    Feb 8, 2007, 05:03 PM
    Dividend journal entry
    Can someone please help me with this journal entry:

    The company declared and distributed cash dividend totaling $6,000 to its shareholders.

    I think the journal entry is this, am I right?

    Dividends declared 6,000
    Cash 6,000

    Or is it

    Dividends Payable 6,000
    Cash 6,000
    KongTheKonqueror's Avatar
    KongTheKonqueror Posts: 75, Reputation: 13
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    #2

    Feb 8, 2007, 07:25 PM
    One the declared date it would be,
    Dividends 6,000
    Dividends Payable 6,000

    When paid it would be,
    Dividends Payable 6,000
    Cash 6,000

    Or if done on the same date it would only be,
    Dividends 6,000
    Cash 6,000
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #3

    Feb 8, 2007, 10:26 PM
    I agree with Kong.
    sajalarora's Avatar
    sajalarora Posts: 16, Reputation: 3
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    #4

    Feb 9, 2007, 01:04 AM
    The proper treatment regarding dividend journal entries are as below:

    At the time of dividend declared,

    Profit &loss appropriation a/c... dr 6,000
    To proposed dividend a/c 6,000
    As dividend are first appropriated from the profit of the company.

    At the time of dividend paid to shareholders

    Proposed dividend a/c... dr 6,000
    To dividend a/c 6,000


    Dividend a/c... dr 6,000
    To cash a/c 6,000
    Mansi09's Avatar
    Mansi09 Posts: 1, Reputation: 1
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    #5

    Apr 19, 2009, 11:50 AM

    Can some on please help me with this journal entry
    jaN.16- delared a cash dividend and payable feb.15 to stock holders of record on feb.5
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #6

    Apr 19, 2009, 05:41 PM
    Quote Originally Posted by Mansi09 View Post
    can some on please help me with this journal entry
    jaN.16- delared a cash dividend and payable feb.15 to stock holders of record on feb.5
    Kong pretty well already answered what these journal entries are, other than the dollar amount being different of course.
    AAMIRSAIFULLAH's Avatar
    AAMIRSAIFULLAH Posts: 1, Reputation: 1
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    #7

    Nov 17, 2009, 07:33 AM
    First when divided is declared the entry will be
    Debit DIVIDEND XXX
    Credit to DIVIDEND PAYABLE XXX
    Debit RETAIND EARNINGS XXX
    Credit DIVIDEND XXX
    AND WHEN PAYMENT
    Debit DIVIDEND PAYABLE XXX
    Credit CASH XXX
    S.Mehdi's Avatar
    S.Mehdi Posts: 1, Reputation: 1
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    #8

    Dec 16, 2009, 09:36 AM
    When declared,

    Retained earnings 6000
    Dividend payable 6000

    When paid,

    Dividend payable 6000
    Cash 6000
    hongoliu's Avatar
    hongoliu Posts: 1, Reputation: 1
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    #9

    Mar 23, 2010, 10:26 PM

    Correct answer:
    When declared:

    Dr Dividends declared xxx
    Cr Dividends payable xxx

    When paid, there should be 2 journals
    Dr Dividends paid xxx
    Cr Dividends Declared xxx

    Dr Dividends payable xxx
    Cr Cash xxx

    And if you paid by Retained Earnings
    Dr Retained earnings
    Cr Share capital
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #10

    Mar 28, 2010, 01:52 AM

    The post is old. We do not just give answers away to homework - we try to help people understand it. (i.e. answers without explanations aren't worth a lot). Third, your "correct" answer is incorrect.
    acepj's Avatar
    acepj Posts: 1, Reputation: 1
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    #11

    Apr 17, 2010, 08:29 AM
    As per IFRS (Cash @ Face Amount and Property Dividends @ Fair Value)

    Upon declaration, the entry is

    dr: Retained Earnings Pxxxx
    Cr: Dividends Payable Pxxxx

    Upon recording
    Memorandum entry only.


    Upon payment Payment

    dr: Dividends Payable Pxxxx
    Cr: Cash Pxxxx
    nil_anush's Avatar
    nil_anush Posts: 1, Reputation: 1
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    #12

    Apr 30, 2010, 03:31 AM
    Hi, I guess Amir saifullah is very much correct on That journal. But the process can be more easier if u just do:

    When you declare the dividend: Accrual basis
    Dr Retained Earnings
    Cr Dividend payable

    When you pay the amount:
    Dr Dividend payable
    Cr Cash/Bank

    And there is no such entry named Dividend declared, If u say it, where you will give it effect into the FS. Or will you make a new General Ledger for that, Its funny man.
    nicolitz's Avatar
    nicolitz Posts: 3, Reputation: 1
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    #13

    Nov 3, 2010, 02:06 PM
    Debit Retained Earnings XX
    Credit Dividend Payable XX

    Declaration of Dividends.

    Debit Dividend Payable XX
    Credit Cash or Checking Acct XX

    Payment of Dividend to Stockholders.
    geoaguilar's Avatar
    geoaguilar Posts: 5, Reputation: 1
    New Member
     
    #14

    Nov 19, 2011, 08:06 PM
    How do I record the following entry: paid property taxes of $5200
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #15

    Nov 20, 2011, 11:24 AM
    Debit Property Tax Expense for the amount paid
    Credit Cash for the amount paid
    ckania's Avatar
    ckania Posts: 1, Reputation: 1
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    #16

    May 3, 2012, 06:58 PM
    1. At declaration date:

    Dr Retained Earnings
    Cr Dividends Payable

    2. At payment date:

    Dr Dividends Payable
    Cr Cash
    sachin_25's Avatar
    sachin_25 Posts: 1, Reputation: 1
    New Member
     
    #17

    Jun 11, 2012, 03:28 AM
    Can you please tell me divided is which head of balance sheets shows
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #18

    Jun 11, 2012, 05:24 AM
    Such a long answer for a small problem
    Shaarif's Avatar
    Shaarif Posts: 1, Reputation: 1
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    #19

    Mar 26, 2013, 05:40 AM
    On declaration
    Dr: Retained Earnings 6000
    Cr: Dividend Payable 6000

    On payment
    Dr: Dividend Payable 6000
    Cr: Cash/Bank 6000
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
    Ultra Member
     
    #20

    Mar 27, 2013, 10:31 AM
    This is a very old post and it should be closed.

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