Answered

Davis Enterprises has 250,000 shares of $5 par value common stock outstanding. Davis declares $2 dividend on March 2, payable on April 2. The journal entry for the payment of the Cash dividend on April 2 is:_____

Answer :

JEANASHUPPGO

Answer with explanation:

Total shares = 250,000

Dividend per share = $ 2

Total dividend = (Total shares)  x (dividend ) = 250,000 x 2 = $500,000

So, the journal entry for the payment of the Cash dividend on April 2 would be :

Date       particular business transaction           Debit           Credit                            

April 2      Dividend payable A/c   Dr.                $500,000

                   To cash  A/c               Cr.                                     $500,000

CHILLJAIN33GO

The journal entries that would take place in the books of Davis enterprises as on April 2nd will take effect as debit in dividend payable Ac which would in turn be credited to the Cash Ac.

Journal entries is a simple format of recording the financial transactions of an organization in a chronological manner as they keep occurring in the business.

  • There will be debit in dividend payable account which would lead to take entry in the cash ac in the ledger accounts of the organization, here, Davis Enterprises.

  • There are 250000 share outstanding at the end of Davis Enterprises and the dividend of $2 has been declared per share which will lead to declaration of $500000 dividend in amount.

  • This $500000 will be distributed proportionately among the shareholders of the firm by virtue of number of shares being held by them in their demat accounts as on the record date.

Hence, the dividend of $500000 will be declared by Davis Enterprises and the journal entries are attached below.

To know more about journal entries, click on the link below.

https://brainly.com/question/17439126

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