There are three important dates associated with cash dividends.

There are three important dates associated with cash dividends.

The date of declaration is the date the board of directors formally declares that a dividend is going to be paid.

The date of record is the date on which the ownership of stock, and therefore the right to receive the dividend, is determined.

The date of payment is the date on which the dividend is paid to the stockholders of record.

On June 1, the board of directors formally declares that $50,000 of dividends be paid to stockholders of record on June 15, to be paid on July 1. What are the entries to the accounting equation?

Assets = Liab. + Equity

Date of Declaration

Date of Record

Date of Payment

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