Question

14
prepare journal entries to record the following transactions for emerson corporation.
note: if no entry is required for a transaction/event, select
o journal entry required\ in the first account field.

july 15 declared a cash dividend payable to common stockholders of $165,000.
august 15 date of record is august 15 for the cash dividend declared on july 15.
august 31 paid the dividend declared on july 15.

journal entry worksheet
1 2 3
record the declaration of a cash dividend payable to common stockholders.
note: enter debits before credits.
date general journal debit credit
july 15

Explanation:

Step1: Analyze July 15 Transaction

On July 15, a cash dividend is declared. The retained earnings are decreased (debited), and a liability (dividends payable) is increased (credited). The amount is $165,000. So the journal entry is: Debit Retained Earnings for $165,000, Credit Dividends Payable for $165,000.

Step2: Analyze August 15 Transaction

August 15 is the date of record. No journal entry is required for the date of record as it is just a cutoff date to determine shareholders. So we select "No journal entry required".

Step3: Analyze August 31 Transaction

On August 31, the dividend is paid. The liability (dividends payable) is decreased (debited), and cash is decreased (credited) by $165,000. So the journal entry is: Debit Dividends Payable for $165,000, Credit Cash for $165,000.

Journal Entry for July 15:

Date	General Journal	Debit	Credit
	Dividends Payable		165,000

Journal Entry for August 15:

Date	General Journal	Debit	Credit

Journal Entry for August 31:

Date	General Journal	Debit	Credit
	Cash		165,000

Answer:

• July 15: Debit Retained Earnings $165,000; Credit Dividends Payable $165,000.
• August 15: No journal entry required.
• August 31: Debit Dividends Payable $165,000; Credit Cash $165,000.