Stocks

What Is The Journal Entry When Dividends Are Declared?

A decrease (debit) to Retained Earnings (a stockholders’ equity account) and a rise (credit) to Cash Dividends Payable are recorded in the journal entry to record the declaration of the cash dividends (a liability account). What happens when a dividend is declared? Stock dividends have a similar effect on stock price to cash dividends, despite

What Is The Journal Entry When Dividends Are Declared? Read More »