On March 1, the board of directors declared a cash dividend of $0.75 per common share to

Question:

On March 1, the board of directors declared a cash of $0.75 per common share to shareholders of record on March 10, payable March 31. There were 125,000 shares issued and outstanding on March 1 and no additional shares had been issued during the month. Record the entries for March 1, 10, and 31.

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...