Able company declared a $50,000 cash dividend on April 15th with a record date of May 15th. No entry was needed on the record date. On May 31st, Able company paid the dividend, debiting dividend payable and crediting cash for $50,000 to record the payment.

1. 14. Able company provides you the following information regarding dividend activity for 2013. -
- April 15 declares a cash dividend of $50,000 --May 15 they inform you the date of record for
the is May 15th for the dividend declared April 15 -- May 31 company pays the dividend
Solution
Journal Entry
Date Account Debit Credit
Apr-15 Dividend 50000
Dividend Payable 50000
May-15 No Entry
May-31 Dividend Payable 50000
Cash 50000