On April 15, 2014, the board of directors for Auction.com declared a cash dividend of 65 cents

Question:

On April 15, 2014, the board of directors for Auction.com declared a cash of 65 cents per share payable to stockholders of record on May 20. The dividends will be paid on June 14. The company has 100,000 shares of stock outstanding. Prepare any necessary journal entries for each date.

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...