On May 1, CGI Corporation declared cash dividends on its common stock.The dividend was payable on May 15 to shareholders of record on May 5.Which of the following entries will CGI make on May 5 in its accounting information system?

Question

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On May 5, the record date, CGI Corporation would not make any accounting entries. The record date simply identifies who will receive the dividend, but no accounting transaction occurs on this date. The entries for declaring the dividend (debit retained earnings, credit dividends payable) would have been made on the declaration date (May 1), and the entry to distribute the dividend (debit dividends payable, credit cash) would be made on the payment date (May 15).

On May 1, CGI Corporation Declared Cash Dividends on Its