Dividend Receivable
Definition: Dividends declared but not received
Scope:NarrowDifficulty:Easy
Dividends declared but not received
Common Journal Entries
| Account | Debit | Credit |
|---|---|---|
| 1. Dividend declared | ||
| Investee declares $1,200 cash dividend. | ||
| Dividend ReceivableAsset+ | $1,200 | |
| Dividend RevenueRevenue+ | $1,200 | |
| Receivable on declaration date when right to receive is established. | ||
| 2. Receive dividend | ||
| Dividend check of $1,200 arrives. | ||
| CashAsset+ | $1,200 | |
| Dividend ReceivableAsset− | $1,200 | |
| Cash increases, receivable cleared. | ||
T-AccountsA visual representation of a ledger account shaped like the letter T. Left side shows debits, right side shows credits.
Dividend ReceivableDividend ReceivableAssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$1,200.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$1,200.00
$0.00
Dividend RevenueDividend RevenueRevenueIncome earned from business operations. Normal balance: credit. Credits increase, debits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$1,200.00
Normal bal. ▶
$1,200.00
CashAsset account. Debits increase the balance. Credits decrease the balance.AssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$1,200.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$1,200.00
DurationShort-Term
Related Subjects
Related
- Non-Trade ReceivablesDividends receivable are a non-trade receivable
Contrast
- Interest ReceivableDividends from equity investments; interest from debt
- Accounts ReceivableA/R from sales; dividend receivable from investments
Next Step
- CashDividend receivable converts to cash on payment date
External Links
- Dividend#Accounting — Wikipedia