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    smiley007's Avatar
    smiley007 Posts: 5, Reputation: 1
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    #1

    Jan 29, 2009, 06:52 AM
    Stock journal entry
    Declared and paid a special year-end 10 cents per share on the 150,000 shares of stock outstanding. What is the journal entry:confused:
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Jan 29, 2009, 08:18 AM

    DR Bank Account ------------15,000
    Cr Paid-Up Capital Account -----------15,000

    Being the receipt of 10 cents per share on the 150,000 shares of stock outstanding.
    Cynthia514's Avatar
    Cynthia514 Posts: 37, Reputation: 1
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    #3

    Jan 29, 2009, 12:31 PM
    If you are the one who pays, you should credit your cash account and a debit to your dividends with the same amountyou pay out.
    DR Dividends... 15,000
    Cr Cash... 15,000
    Notes: This dividends will decrease your retained earnings as you prepare the financial statements.
    Cynthia514's Avatar
    Cynthia514 Posts: 37, Reputation: 1
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    #4

    Jan 29, 2009, 12:35 PM
    I did not read your question carefully. You ased for the declaration and the payment J/E
    Declaration:
    DR: Dividends... 15,000
    Cr:Account payable... 15,000
    The day you made the payment to shareholders:
    DR: account payable... 15,000
    Cynthia514's Avatar
    Cynthia514 Posts: 37, Reputation: 1
    Junior Member
    		  
    #5

    Jan 29, 2009, 12:36 PM

    I did not read your question carefully. You ased for the declaration and the payment J/E
    Declaration:
    DR: Dividends... 15,000
    Cr:Account payable... 15,000
    The day you made the payment to shareholders:
    DR: account payable... 15,000
    Cr:Cash... 15,000
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