(1) What is a dividend and what is the difference between cash dividends and stock dividends?

(2) What does it mean when shares of stock are outstanding?

(3) What type of account is the Cash Dividends account?

(4) On March 15, the board of directors of Beer, Inc. declared a $0.20 per-share dividend on its common stock to shareholders of record on March 31, payable on April 15. Beer has 40,000 shares of stock authorized, 25,000 shares issued, and 18,000 shares outstanding.

Please select TWO of the following dates and show what the journal entries should look like. Make sure you label which ones you have selected.

a. Date of Declaration:

b. Date of Record:

c. Date of Payment: