On 6/17, Year 6, the board of directors of a corporation declares a cash dividend equal to $700,000 for shareholders of record on 7/23, Year 6, payable on 8/19, Year 6. However, as of 6/17, Year 6, the retained earnings account has a credit balance of $0 (zero). The retained earnings account can only absorb a dividend equal to its credit balance and cannot be reduced to a deficit (i.e., debit balance) as a result of a dividend.

 

6/17/Yr 6 

7/23/Yr 6 

8/19/Yr 6

What are the journal entries! 

Answer rating: 100% (QA)

On 617Yr 6 Debit Retained Earnings 0 Credit Dividends Payable 0 Since the ... View the full answer