[lara12]

Eidman corporation has 80,000 shares of common stock outstanding. It declares a $1 per share cash dividend on Novemeber 1 to stockholders of record on December 1. The dividend is paid on December 31. Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend.. help I'm confused :{

[pready]

At date of declaration which is Nov 1.
Debit Retained Earnings for 80,000 (80,000 Shares X $1 a Share)
Credit Dividends Payable for 80,000

At Date of Record which is Dec 1.
No Entry

At date of Payment which is Dec 31.
Debit Dividends Payable for 80,000
Credit Cash for 80,000