Journal Entry for Dividends

[@JamesRedden]

I have my accounting exam tomorrow and I’ve been binge watching your vids. Needless to say I learned more today than my entire semester in that class, thank you🙏

[@brianwhite5798]

Just wanted to leave a quick note. I learned about dividends in during financial accounting in my undergrad. It was presented a little differently. For the declaration of dividends that were to be paid we were taught to debit retained earnings and then credit dividends payable. I just thought it was interesting that the concept presented here is different, however, the ending results are the same because of the closing entries to the dividends account.

[@blackezi3]

This is the best type of teaching... Teaching based on REALITY and not fantasy lol

[@Edspira]

Thanks!

[@stellaliu2689]

this video makes me totally understand dividents in journal entry....

[@Edspira]

😀

[@arjunarun9174]

I thought when you declare a dividend you have to immediately reflect it in the retained earnings too?

[@bmanq2234]

Keep coming to your videos! Another thumbs up.

[@MyFinancialFocus]

Love journal entries. Debts and credits make everything easier.

[@tamjidaakterurmi4666]

Thanks for this video. I can understand very easily.

[@Melki]

Very engaging presentation and I got what I’m looking for from it. Thank you

[@RenegadeMatrix]

I am new to accounting and learning a lot here. Thank you very much for the explanations. If the company declares the dividend in Q3, but pays it in Q4, then for the Q3 entry, i would have entry 1. Debit dividend (temporary), credit dividend payable and 2. Debit Retained Earnings and Credit Dividend (temporary) to close off the declaration of the dividend. And only in the Q4 statement would I see the 3rd entry when the dividend is actually paid 3. Debit Dividends Payable, credit cash? Thanks again!

[@Edspira]

This is correct. You do the closing entry at the end of the period in which you declared the dividend. Good question!

[@ethanbond1676]

Thank you for your service sir

[@sszoltan]

Great video. Just one question: If you declare a dividend without immediate payment, do you add "Dividends Payable" in the Enterprise Value calculation?

[@michaelsaenz380]

What a great video, thank you so much!

[@Sportstime5555]

Thanks ❤️ and if additional dividend paid for share holders. Awhat are the double entry

[@travispace6658]

I’m taking my final right now

[@sandeepsahni360]

Thank you sir for this valuable information .Keep going on. God bless you.

[@JettingChen]

1:10 divided account is temporary account

[@lopsangdlama]

so, that closing entry shows up nowhere in the financial statement ? is it mentioned somewhere ?

[@rolland9355]

The closing entry will show up in the statement of changes in equity. It will reduce the Retained Earnings

[@chauhanlakshank4222]

Company declares dividend but still not paid to me, what would be accounting entry in my accounting book of entry.

[@africarib]

Scenario #2 in yellow

[@ELPAPA.2023]

Great video in 2024 Happy 🎉new year

[@Codwanabee]

thank you this was helpful !

[@bhavikupadhyaya972]

If I pass my final you are the reason why