Yougi Corp. is an animation studio operating in South Florida. A recent press re

Question

Yougi Corp. is an animation studio operating in South Florida. A recent press release contained the following information: April 1 Yougi Corp. today announced that its Board of Directors has declared a eash dividend of S0.40 per share on 685,000 outstanding preferred shares. The dividend will be paid on or before May 31, to preferred shareholders of record at the close of business on May 26. The Company's fiscal year will end on June 30 Required: 1. Prepare any journal entries that Yougi Corp. should make on the four dates mentioned in the press release. flf no entry is required for a transactionlevent, select "No Journal Entry Required" in the first acoount field.) View transaction list 1 Record the declaration of a cash dividend of so.40 per share for the 685,000 shares of preferred stoclk outstanding. 85,000 2 Record the entry on the date of record Record the payment of the cash dividend to the preferred shareholders. 3 Credit 4 Record the entry to close dividends account Note, . journal entry has been entered Record entry Clear entry View general journal

Explanation / Answer

Apr-01 Dividends 274000 =685000*0.4          Dividends payable 274000 May-26 No entry May-31 Dividends payable 274000          Cash 274000 Jun-30 Retained earnings 274000        Dividends 274000 2 .The board must consider the balances of retained earnings and cash before declaring a cash dividend

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