If dividend income received: Debit Cash / bank Credit Dividend income If dividend income receivable: Debit Dividend income receivable Credit Dividend income
Dividend receivable Debit Cash dividend Credit Cash Debit Dividend receivable Credit
[Debit] Proposed dividend [Credit] Dividend payable [Debit] Dividend payable [Credit] Cash / bank
[Debit] Proposed dividend [Credit] Dividend payable
[Debit] Dividend [Credit] Cash
If dividend income received: Debit Cash / bank Credit Dividend income If dividend income receivable: Debit Dividend income receivable Credit Dividend income
Dividend receivable Debit Cash dividend Credit Cash Debit Dividend receivable Credit
[Debit] Proposed dividend [Credit] Dividend payable [Debit] Dividend payable [Credit] Cash / bank
[Debit] Proposed dividend [Credit] Dividend payable
[Debit] Dividend [Credit] Cash
Yes following entry required: [Debit] Proposed dividend [Credit] dividend payable
[Debit] Dividend expense [Credit] Dividend payable 2nd entry at time of payment Debit Dividend payable Credit Cash
[Debit] Cash/Bank xxxx [Credit]Dividend Income xxxx
[Debit] Dividend xxxx [credit] cash / bank xxxx
yes
The journal entries for different time periods are recorded as the following: 1 - When the dividend is declared: [Debit] Retained Earnings XXXX [Credit]Dividend Payable XXXX 2 - When the dividend is paid: [Debit] Dividend Payable XXXX [Credit] Cash/bank XXXX
Let's say the dividend payable is $110. When the dividend is declared (eg the decision is made to pay a dividend but the dividend and tax won't be paid until, say, the first day of next month) then the entry is: Debit "Dividends Expense" (Expense Account) $110 Credit "Dividend Payable Parent Company" (Liability Account) $100 Credit "Dividend Tax Withheld" (Liability Account) $ 10 When the dividend and Tax is actually paid (eg it is now the first day of next month) the entry is: Debit "Dividend Payable Parent Company" (Liability Account) $100 Debit "Dividend Tax Withheld" (Liability Account) $ 10 Credit "Bank Account" (Asset Account) $110