Answer:
The journal entry to record the dividend declaration would be as follows:
Debit Credit
retained earnings $63,700
common dividend payable $63,700
Explanation:
According to the given data we have the following:
shares issued=190,000
treasury stock=8,000
cash dividend=$0.35
Therefore, to prepare the journal entry to record the dividend declaration we would have to calculate the retained earnings as follows:
retained earnings=(shares issued-treasury stock)*cash dividend per share
retained earnings=(190,000-8,000)*$0.35
retained earnings=$63,700
Hence, The journal entry to record the dividend declaration would be as follows:
Debit Credit
retained earnings $63,700
common dividend payable $63,700
