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    marie_728's Avatar
    marie_728 Posts: 1, Reputation: 1
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    #1

    Sep 16, 2008, 10:08 AM
    Declaring Dividends
    How do you delcare a dividend?
    AdamUTsel's Avatar
    AdamUTsel Posts: 100, Reputation: 2
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    #2

    Sep 16, 2008, 12:21 PM
    You make a formal annoucement to shareholders typically.

    To account for declared cash dividends, you book the following entry:

    Dr Cash Div Declared
    Cr Dividends Payable

    On payments date, you would reduce your cash balance and offset it against your payable.

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