LMN Ltd declared an interim dividend on 12 February 2016 of 5 cents per share (500 000 issued shares)and paid it on 3 March 2016.
-The journal entry on 12 February 2016 would include:
A) Dr Interim dividend declared,$25 000.
B) Cr Cash,$25 000.
C) Cr Retained profits,$25 000.
D) none of the answers provided.

Question

Quizplus · Accepted Answer

The journal entry on 12 February 2016 would include a debit to Interim Dividend Declared for $25,000 to record the declaration of the dividend.

LMN Ltd Declared an Interim Dividend on 12 February 2016