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1 year ago

What is the journal entry for declaring $9000 dividend to be paid next month

Business

1 answer:

meriva1 year ago

3 0

The journal entry for declaring a $9,000 dividend to be paid in the coming month is:

Date Account Title Debit Credit

XX-XX-XXXX Retained earnings $9,000

Dividends Payable $9,000

<h3>How is dividend declared recorded?</h3>

The Retained earnings account will be debited to show that the account is decreasing. This is because dividends are taken from the retained earnings of a company.

The dividends payable account will be credited with $9,000 to show that the company now owes its shareholders $9,000. This will then be debited next month to show payment.

In conclusion, retained earnings are debited, and dividends payable are credited.

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