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How do I deal with Payment of dividend to shareholder.

Payment of dividend to shareholder.
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Re: How do I deal with Payment of dividend to shareholder.

Typically the company declares that a dividend is authorized.

journal entry

debit retained earnings for the total dividend amount
credit dividend payable

 

When you pay the divided, you write a check for the shareholder amount and use dividend payable as the expense (reason) for the check