Reference no: EM132566450
On August 15, 2019, EasyMoney Inc's Board of Directors meets and declares that EasyMoney will pay a dividend to its stockholders. Each share of EasyMoney's Common Stock will be paid a dividend of $1.25 per share. There are currently 100,000 shares of EasyMoney's Common Stock held by EasyMoney's shareholders.
Dividend per share $1.25
Date of Declaration August 15,2019
Date of Record September 5,2019
Date of Payment September 20,2019
The following is a partial list of the accounts in EasyMoney, Inc's General Ledger. These are the only accounts you need for this problem
Cash
Dividends Payable
Retained Earnings
As of August 1, 2019, the beginning balance in the dividends payable account is $0 and the beginning balance in the retained earnings account is $625,000.
Question 1: Record the entry that EasyMoney should make in the General Journal on September 20, 2019 to recod the payment of the dividend. After making and posting the September 20 entry, what is the Current Balance in the Dividends Payable account?