Answer:
The journal entries shown below:
Explanation:
On October 1
Dividends A/c.................................Dr $3,000
Dividend Payable A/c...................Cr $3,000
Being company declared the dividend of 4,000 shares at the rate of $0.75 per share.
On October 15
No Journal Entry Required
On October 31
Dividends Payable A/c...................Dr $3,000
Cash A/c......................................Cr $3,000
Being Dividend is paid, so cash is decreasing and any decrease in asset is credited. Therefore, cash account is credited. And the account of dividend payable is debited.
