On February 16,a company declares a 34'dividend to be paid on April 5 to shareholders of record on March 9.There are 2 million shares of common shares outstanding and 100,000 shares of treasury shares.What accounting entries does the company record on February 16?

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On February 16, the company declares a dividend, which requires recording a debit to Dividends Declared and a credit to Dividends Payable. The dividend is $0.34 per share for 1.9 million shares (2 million outstanding - 100,000 treasury), totaling $646,000.

On February 16,a Company Declares a 34'dividend to Be Paid