26 On July 1 Telstar Corporation declared a 100 per share ca

26. On July 1, Telstar Corporation declared a $1.00 per share cash dividend on its common stock (15,000 shares) for stockholders on record as of July 15. Telstar paid the dividend on July 31. Journalize the entries declaring the cash dividend and paying the dividend.

Solution

1-Jul Cash dividends 15000       Cash dividends payable 15000 31-Jul Cash dividends payable 15000        Cash 15000