Question 1: (10 points): A1, B1, C1

1)Three important dates related to the cash dividends.

a)Declaration date: the date when the board of director announces the payment of dividends. An obligation or a (lability) is created by the corporation.

b)Date of record: date the corporation records the list of stockholders who hold the shares are eligible for dividend payment.

c) payment date: the date the dividends are paid to shareholders and journal entries are made. Example: Board of directors of ABC corporation declared a cash dividend on March 5 2018, for US $ .5 per share to stockholders holding shares on 15 June 2018. The dividend is payable on the 30 June 2018

ABC company has 50,000 shares of $ 1par common stock as at5 March 2018.

Date of declaration: March 5, 2018

Record date: June 15, 2018

Payment date: June 30, 2018

Journal entry: 5^th march 2018

Retained earning : 25,000

Dividend payable : 25,000

30^th June 2018

Dividend payable 25,000

Cash 25,000