For cash dividends,no journal entry is made on the date of record.

Name: For cash dividends,no journal entry is made on the date of record.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

On the date of record for cash dividends, no actual payment or transaction takes place, so there is no need to make a journal entry. Instead, the records are updated to reflect the shareholders who are entitled to receive the dividend payment on the payment date. The journal entry is made on the payment date when the payment is actually distributed.

For Cash Dividends,no Journal Entry Is Made on the Date