Woolford Inc. declared a cash dividend of $1.43 per share on its 2.44 million ou

Question

Woolford Inc. declared a cash dividend of $1.43 per share on its 2.44 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August 15. Prepare the journal entries necessary on those three dates. (If no entry is required, enter No Entry as the Description and 0 as the amount.)

Date Description/Account Debit Credit Aug. 1 Preferred StockCashRetained EarningsDividends PayableNo EntryCommon Stock          CashRetained EarningsDividends PayableNo EntryCommon StockPreferred Stock Aug. 15 Retained EarningsDividends PayableCommon StockCashPreferred StockNo Entry          No EntryPreferred StockCommon StockDividends PayableRetained EarningsCash Sep. 9 Preferred StockCashDividends PayableCommon StockNo EntryRetained Earnings          Preferred StockRetained EarningsDividends PayableCashNo EntryCommon Stock Woolford Inc. declared a cash dividend of $1.43 per share on its 2.44 million outstanding shares. The dividend was declared on August 1, payable on September 9 to all stockholders of record on August 15. Prepare the journal entries necessary on those three dates. (If no entry is required, enter No Entry as the Description and 0 as the amount.)

Explanation / Answer

dr

cr

Aug 1

Retained earning

3.4892 millions

Dividends Payable

3.4892 millions

Aug. 15

No Entry.

Sep. 19

Dividends Payable

3.4892 millions

cash

3.4892 millions

dr

cr

Aug 1

Retained earning

3.4892 millions

Dividends Payable

3.4892 millions

Aug. 15

No Entry.

Sep. 19

Dividends Payable

3.4892 millions

cash

3.4892 millions

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