Use the following information for questions.
On July 15, 2018, 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, 2018, to shareholders of record on July 31, 2018.
-The correct entry to be recorded on August 15, 2018 will include a
A) debit to Dividends Declared.
B) credit to Retained Earnings.
C) credit to Dividends Payable.
D) debit to Dividends Payable.

Question

Quizplus · Accepted Answer

On August 15, 2018, the company will pay the dividend, so the entry will include a debit to Dividends Payable to eliminate the liability.

Use the Following Information for Questions