Monty Inc. has 5,400,000 shares of common stock issued and outstanding. On April 1, the board of directors voted a 70 cents per share cash dividend to stockholders of record as of April 14, payable April 21.     Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings.   How would the entry differ if the dividend were a liquidating dividend?

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Monty Inc. has 5,400,000 shares of common stock issued and outstanding. On April 1, the board of directors voted a 70 cents per share cash dividend to stockholders of record as of April 14, payable April 21.
 
 
Prepare the journal entry for each of the dates above assuming the dividend represents a distribution of earnings.
 
How would the entry differ if the dividend were a liquidating dividend?

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