The journal entry to record $25,000 market value in share dividends on the date of declaration can be a debit to share dividends and a credit to common share dividends distributable.

Question

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This is the correct journal entry to record the declaration of share dividends. The debit should be to share dividends (an expense account), and the credit should be to common share dividends distributable (a liability account).

The Journal Entry to Record $25,000 Market Value in Share