Use the following information for questions
On July 15, 2022, the board of directors of George Easton Limited declared a cash dividend of $0.50 per share on 84,000 common shares.The dividend is to be paid on August 15, 2022, to shareholders of record on July 31, 2022.
-The correct entry to be recorded on August 15, 2022 will include a
A)debit to Dividends Declared.
B)credit to Retained Earnings.
C)credit to Dividends Payable.
D)debit to Dividends Payable.

Question

Use the following information for questions 
On July 15, 2022, the board of directors of George Easton Limited declared a cash dividend of $0.50 per share on 84,000 common shares.The dividend is to be paid on August 15, 2022, to shareholders of record on July 31, 2022.
-The correct entry to be recorded on August 15, 2022 will include a
A)debit to Dividends Declared.
B)credit to Retained Earnings.
C)credit to Dividends Payable.
D)debit to Dividends Payable.

Quizplus · Accepted Answer

On August 15, 2022, the company pays out the dividends, so the correct entry involves debiting Dividends Payable to remove the liability of the dividend payment.

Use the Following Information for Questions