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On March 15, American Eagle declares a quarterly cash dividend of $0.110 per share payable on April 13 to all stockholders of record on March 30.Required: Record American Eagle's declaration and payment of cash dividends for its 220 million shares.

Respuesta :

Answer:

Explanation:

The journal entries are shown below:  

1. Retained earning A/c Dr  $24.2 million  

To Dividend payable A/c  $24.2 million

(Being cash dividend declared)  

2. Dividend payable  A/c Dr $24.2 million

         To Cash A/c  $24.2 million

(Being cash dividend is paid)

Th computation is shown below:

= Number of shares × cash dividend per share

= 220 million shares × $0.110 per share

= $24.2 million  

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