Stellar Corporation has 12.10 million shares of common stock issued and outstand

Question

Stellar Corporation has 12.10 million shares of common stock issued and outstanding. On June 1, the board of directors voted an 85 cents per share cash dividend to stockholders of record as of June 14, payable June 30. Your answer is partially correct. Try again. Prepare the journal entries for each of the dates above assuming the dividend represents a distribution of earnings. (Credit account titles are automatically indented when amount is entered. Do not indent manualy. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit 6/1 Retained Earnings 10285000 Dividends Payable 10285000 6/30 Dividends Payable 10285000 Cash 10285000

Explanation / Answer

Solution 1:

Solution 2:

Journal Entries - Stellar Corporation Date Particulars Debit Credit 1-Jun Retained earnings Dr $10,285,000.00              To Dividend Payable $10,285,000.00 (To record dividend declared) 14-Jun No Entry $0.00 No Entry $0.00 30-Jun Dividend payable Dr $10,285,000.00              To Cash $10,285,000.00 (To record payment of dividend)

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