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Spadoon
Apr 23, 2013, 04:20 PM
The board of directors declared a $2.30 per-share cash dividend payable on January 14 to stockholders of record on December 26. No previous entries were done for dividends payable or declared dividends. Do I need to do an adjusting entry?

pready
Apr 24, 2013, 11:47 AM
On Dec 26 you need to record the dividends declared and your Credit will be to dividends payable. Your amount will be $2.30 times number of shares outstanding at Dec 26.