To record the dividend declaration and payment by Sunrise Communications, we need to make entries in December 2024. Here are the journal entries for those events:
-
Declaration of Dividend on December 1:
- This entry recognizes the liability incurred when the dividend is declared.
Journal Entry:
Date: December 1, 2024 Accounts and Explanation | Debit | Credit --------------------------------------------------------- Dividends Declared | [Amount] | Dividends Payable | [Amount] (To record declaration of dividend) -
Record of Stockholders of Record on December 10:
- No journal entry is required for the record date as it is simply noting who will receive the dividend.
Journal Entry:
Date: December 10, 2024 Accounts and Explanation | Debit | Credit --------------------------------------------------------- No entry required | -
Payment of Dividend on December 20:
- This entry recognizes the payment of the previously declared dividend, reducing the liability.
Journal Entry:
Date: December 20, 2024 Accounts and Explanation | Debit | Credit --------------------------------------------------------- Dividends Payable | [Amount] | Cash | [Amount] (To record payment of dividend)
Note: Replace [Amount] with the actual amount of the dividends declared and paid.
Make sure to provide the specific amounts in your journal entries as applicable to Sunrise Communications' dividend.