On April 15, 2003, the board of directors for Auction.com declared a cash dividend of 20 cents per share payable to stockholders of record on May 20. The dividends will be paid on June 14. The company has 500,000 shares of stock outstanding. Prepare any necessary journal entries for each date.
The total amount of dividends is 500,000X0.2=$100,000
When the dividends are declared, the journal entry is
The solution has the journal entries that should be recorded relating to dividends.