Which of the following happens at the date of record of a cash dividend?
A)Dr.Dividends Declared,Cr.Dividends Payable
B)Dr.Dividends Declared,Cr.Cash
C)No entry is made in the accounts,but a list of shareholders entitled to receive the dividend is prepared.
D)The board of directors approves the dividend but no entry is made in the accounts.

Question

Quizplus · Accepted Answer

At the date of record of a cash dividend, no entry is made in the accounts but a list of shareholders entitled to receive the dividend is prepared. This list is used to determine the distribution of the dividend when it is paid out. The entries are made at the declaration date (Dr. Dividends Declared, Cr. Dividends Payable) and the payment date (Dr. Dividends Payable, Cr. Cash).

Which of the Following Happens at the Date of Record