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

Question

Quizplus · Accepted Answer

This is true. The only journal entry made for a dividend is on the payment date when the company reduces its cash balance and records the dividend distribution to shareholders. The date of record is simply used to determine which shareholders are eligible to receive the dividend.

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