On 1 November 2013, Oster Company declared a dividend of $3.00 per share. Oster Company has 20 000 ordinary shares outstanding, and no preference shares. The date of record is 15 November, and the payment date is 30 November 2013. No journal entry is made on the date of record.

Question

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The date of record is used to determine which shareholders are entitled to receive the dividend, but no financial transaction occurs, so no journal entry is needed.

On 1 November 2013, Oster Company Declared a Dividend of $3.00