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

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

I agree with Kong.

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

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

Quote:

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Originally Posted by Mansi09

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

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Kong pretty well already answered what these journal entries are, other than the dollar amount being different of course.

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

When declared,

Retained earnings 6000
Dividend payable 6000

When paid,

Dividend payable 6000
Cash 6000

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

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.

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

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.

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.

How do I record the following entry: paid property taxes of $5200

Debit Property Tax Expense for the amount paid
Credit Cash for the amount paid

1. At declaration date:

Dr Retained Earnings
Cr Dividends Payable

2. At payment date:

Dr Dividends Payable
Cr Cash

Can you please tell me divided is which head of balance sheets shows

Such a long answer for a small problem

On declaration
Dr: Retained Earnings 6000
Cr: Dividend Payable 6000

On payment
Dr: Dividend Payable 6000
Cr: Cash/Bank 6000

This is a very old post and it should be closed.