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Following is a recent Giga Tech. press release: REDMOND, Wash.—Nov. 29, 2017 — Giga Tech. on Wednesday announced that its board of directors declared a quarterly dividend of $0.12 per share. The dividend is payable March 8, 2018, to shareholders of record on Feb. 15, 2018. The ex-dividend date will be Feb. 14, 2018. Prepare the journal entries Giga Tech. used to record the declaration and payment of the cash dividend for its 8,000 million shares.

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Answer:

The journal entries are as follows:

(a) On November 29, 2017

Retained earnings A/c Dr. $960 million

       To Dividend payable           $960 million

(To record the declaration of dividend)

Working notes:

Dividend payable = Dividend per share × Number of shares

                              = $0.12 × 8,000 million

                              = $960 million

(b) On February 15, 2018

Dividend Payable A/c Dr. $960,000,000

         To cash                                              $960,000,000

(To record the payment of dividend)

A. Retained earnings A/c Dr.     $960 million

To Dividend payable                                            $960 million

B. Dividend Payable A/c Dr.          $960,000,000

To cash                                                                     $960,000,000

Preparing a Journal entry is as follows:

(A) On November 29, 2017, Entries are:

Retained earnings A/c Dr.      $960 million

To Dividend payable                                     $960 million

(To record the declaration of dividend)

Working notes:

Then Dividend payable = Dividend per share × Number of shares

= $0.12 × 8,000 million

Therefore, = $960 million

(B) On February 15, 2018, Journal entries are:

Dividend Payable A/c Dr.            $960,000,000

To cash                                                                   $960,000,000

(To record the payment of dividend)

Find more information about Journal entries here:

https://brainly.com/question/8913038

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