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Unformatted text preview: No journal entry required on this date Date of payment : payment to stockholders Check is written out to stockholders Dividends only paid on outstanding shares Entries for cash dividends On July 1, Venus Corporation, declared a $2 per share dividend on its 10,000 shares of $10 par outstanding Common Stock, payable on September 30, to stockholders of record on August 15. Journal entry on date of declaration July 1 DEBIT retained earnings 20,000 ($2X10,000) CREDIT common dividends payable 20,000 Dividends are paid through the balance of retained earnings Journal entry on date of record August 15 No journal entry required for this date Journal entry on date of payment September 30 DEBIT common dividends payable 20,000 CREDIT cash 20,000...
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- Fall '10