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Poundcake Company owns 10,000 shares (10% of total shares) of Joshua, Inc. Joshua declares and pays a cash dividend of $0.50 per share. Poundcake first records dividends when cash is received. Upon receipt of the cash dividend, what entry should Poundcake make?

Respuesta :

haseebkhuhro256

Answer:

Explanation:

Journal Entries

On declaration of dividend

Dividend Receivable  (10000*.5)    5000

              Dividend Income                         5000

To record the Dividend Income on declaration date

On dividend Receipt Date

Cash                  5000

            Dividend Receivable  5000

To record the receipt Dividend in ledgers.

marvineetesh3

The journal entries of owing shares and payment of cash in the books of pound cake is given in the image below.

What is journal entry?

Journal entry is the systematic record of financial transactions of a particular company or organization, It is the primary document of every business.

It records all the transactions that are related to the cash only. It records the transactions in a particular format of the journal entry.

Each transaction of the business are listed on the debit and the credit side of the journal format.

Therefore, the journal entries of Pound cake Company are given in the image below.

Learn more about the journal entries, refer to:

https://brainly.com/question/17439126

Ver imagen marvineetesh3