answersLogoWhite

0

In the United States, the three dates that are significant for both paying and accounting for any given cash dividend are: 1) Declaration date: Dividends are not payable unless and until the corporation's Board of Directors declares that a dividend will be paid. The date on which they promise to pay a dividend is called the declaration date, and that is the date on which the company incurs an obligation to pay the dividend. Generally on that date the Board will specify the two other important dates: the ex-dividend date, and the payment date. On the day a dividend is declared, the accounting entries are Debit the Retained Earnings account and credit the Dividends Payable liability account for the total amount of the dividend. 2) Ex-dividend date (or "date of record"): The ex-dividend date is the cutoff date used to identify the particular persons to whom an upcoming dividend will be paid. The shareholders listed on the corporation's records as the owners of shares at the ex-dividend date are the ones who will receive payment of the upcoming dividend, whether or not they still own the shares on the date the dividend is paid. There is no accounting entry related to the ex-dividend date. 3) Payment date: This is the date on which the cash dividend is actually paid out to the shareholders. When the dividend is paid, the accounting entries are: Debit the Dividends Payable account and credit the Cash account for the total amount of the dividend. This eliminates the liablility that was recorded when the dividend was first declared, and reflects the funds going out of the corporation's cash when the dividend is paid.

And so, why are we reading this?

User Avatar

Wiki User

9y ago

What else can I help you with?

Related Questions

What are the release dates for Picket Fences - 1992 Unlawful Entries 2-3?

Picket Fences - 1992 Unlawful Entries 2-3 was released on: USA: 29 October 1993


How long to you have to own a stock to get dividends?

3 days


Ariel wants to write 8 entries for her blog. After 2 hours she has 5 entries left. After 4 hours she has 2 entries left. Which graph represents Ariel's remaining entries?

Graph 3


A substitute is limited to three entries into the game?

Yes they are only allowed 3 entries. That kinda sucks doesn't it.


How do you sort the address bar entries in Firefox 3?

you do not


What are the 3 entries in the card catalog?

puneta walng answer


What are 3 ways to appropriate net profits?

Taxation Dividends Retained Profit


What is a journal voucher?

The entries such as "Rectification Entries", "Adjustment Entries", "Closing or Opening Entries" and Making or Providing for estimates are passed through an internal document called Journal Voucher. Book Entries are classified as: 1) Purchase Order Based Entries - Booking expenses and liability via GRN against a P.O 2) Sales Order Based Entries - Booking Sales & Scrap Sales 3) Treasury Entries - Entries involving Bank or Cash 4) Debit Notes 5) Credit Notes 6) Journal Entries Journal Voucher is the document through which the Journal Entries are made into the books.


Entries for Maximum contests for Nintendogs?

3 per dog a day


What is meant with dividend dates in finances?

There are 3 important dates to consider with dividends; the declaration date- when a board declares it's intention to pay, the date of record - the date from which stockholders are entitled to the payment, the payment date - is the date the dividend will actually be given to shareholders.


What are the release dates for The Big Story - 1949 Walter Beesely of the Associated Press 3-19?

The Big Story - 1949 Walter Beesely of the Associated Press 3-19 was released on: USA: 11 January 1952


Is it ever possible for the domain and range in a function to have different numbers of entries for example 3 domain entries to 5 range entries or 2 range entries to 7 domain entries?

Yes. The range can have fewer number of entries.As an extreme case, consider f(x) = 3, where x is a Real number.The domain is all Real numbers - infinitely many of them, while the range is one value: 3.A function can contain one-to-one or many-to-one relationships but one-to-many relationships are not permitted. As a result, the cardinality of the range cannot be bigger than the cardinality of the domain.