When a Cash Dividend Is Declared, Three Different Dates Usually

question 149

Essay

When a cash dividend is declared, three different dates usually are involved. These three dates are described below. Assume a $5,000 cash dividend. Part A: Name the dates in the space provided: $$\begin{array} { | l | l | l | } \hline & \text { Description } & \text { Name of the Date } \\\hline \text { A } & \begin{array} { l } \text { Date on which the Board of Directors votes on the } \\\text { dividend }\end{array} & \\\hline \text { B } & \begin{array} { l } \text { Date on which the names are taken from the shareholder } \\\text { records }\end{array} & \\\hline \text { C } & \text { Date on which the dividend cheques are mailed } & \\\hline\end{array}$$ Part B: Prepare the journal entry for each date: $$\begin{array} { | l | l | l | } \hline & \text { Description } & \text { Journal Entry } \\\hline \text { A } & \begin{array} { l } \text { Date on which the Board of } \\\text { Directors votes on the dividend }\end{array} & \\\hline \text { B } & \begin{array} { l } \text { Date on which the names are } \\\text { taken from the shareholder } \\\text { records }\end{array} & \\\hline \text { C } & \begin{array} { l } \text { Date on which the dividend } \\\text { cheques are mailed }\end{array} & \\\hline\end{array}$$

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Definitions:

Factory Labor

The workforce engaged in the production process within an industrial facility, including both direct and indirect labor costs.

Equivalent Units

A concept used in cost accounting to convert partially completed goods into a number of complete units for inventory and production cost purposes.

Conversion Costs

The total expenses of direct labor and overhead costs involved in transforming raw materials into completed goods.

Materials

Refers to the raw inputs or components that are used in the manufacturing or production process to create finished goods.