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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 journal entry to be recorded on July 15, 2022, will include a
A)debit to Dividends Payable.
B)debit to Dividends Declared.
C)credit to Cash.
D)credit to Retained Earnings.

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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 journal entry to be recorded on July 15, 2022, will include a
A)debit to Dividends Payable.
B)debit to Dividends Declared.
C)credit to Cash.
D)credit to Retained Earnings.

Quizplus · Accepted Answer

The declaration of a cash dividend results in a debit to Dividends Declared and a credit to Retained Earnings.

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