The board of directors of Westlake Ltd declared a cash dividend of $2.50 per share on 22,000 ordinary shares on 15 July 2019. The dividend is to be paid on 15 August 2019, to shareholders of record on 31 July 2019. The correct entry to be recorded on 15 July 2019 will include a:

Question

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On the day a dividend is declared the entry to record the event is a debit to retained earnings and a credit to dividends payable.

The Board of Directors of Westlake Ltd Declared a Cash