Belmont Corporation has a December 31 year-end. On December 15, 2021, the board of directors declared a cash dividend of $0.50 per common share, payable on January 30, 2022. The date of record for this dividend is January 14, and the ex-dividend date is January 12, 2022. Additional information relating to the shares follows:

Required:

a. Determine the dollar amount of dividends to be paid as a result of the dividend declaration on December 15, 2021.

b. Record all the journal entries related to this dividend in 2021 and 2022.

Transcribed Image Text:

Date December 15, 2021 January 11, 2022 January 14, 2022 January 30, 2022 No. of common shares at end of day Issued 4,000,000 4,000,000 4,000,000 3,600,000 Outstanding 4,000,000 3,800,000 3,600,000 3,600,000