Question

On March 15, American Eagle declares a quarterly cash dividend of $0.045 per share payable on April 13 to all stockholders of record on March 30. Required: Record American Eagle's declaration and payment of cash dividends for its 226 million sharesOn March 15, American Eagle declares a quarterly cash dividend of $0.045 per share payable on April 13 to all stockholders of record on March 30. Required: Record American Eagle's declaration and payment of cash dividends for its 226 million shares

Answer 1

Answer:

Explanation:

The journal entries are shown below:

On March 15

Dividend A/c Dr  $10,170,000               (226,000,000 shares × $0.045)

      To Dividend payable A/c    $10,170,000      

(Being cash dividend declared)  

On March 30

No entry

April 13

Dividend payable A/c    $10,170,000    

          To Cash A/c   $10,170,000    

(Being the payment of cash dividend is recorded)