On May 20, the board of directors for Auction. com declared a cash dividend of 50 cents

Question:

On May 20, the board of directors for Auction. com declared a cash of 50 cents per share payable to stockholders of record on June 14. The dividends are paid on July 14. The company has 500,000 shares of stock outstanding. Closing entries are recorded on July 31. 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...