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    rower54's Avatar
    rower54 Posts: 1, Reputation: 1
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    #1

    Apr 4, 2007, 09:34 PM
    Declared vs. Paid Dividends
    Are common stock dividends declared just prior to the end of a FY (06), but actually paid early in the following FY (07), included in the total amount of dividends "paid" during that FY (06)? Or, like I suspect, are they truly considered "paid" in the following FY (07) total?

    Thanks!
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Apr 4, 2007, 10:38 PM
    It would be included n 2006.

    The JE would be:

    In 2006, upon declaration:
    Dr. Dividends Declared
    Cr Dividends Payable

    At the end of the fiscal year in 2006:
    Dr. RE
    Cr. Dividends Declared

    In 2007, when dividends paid:
    Dr. Dividends Payable
    Cr. Cash
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