AccountingHub
P2

Three dates, two entries

Three dates, but only two of them get a journal entry.

Declaration

Dr. Retained earnings, Cr. Dividend payable — a liability is born.

Record

No entry. Only fixes who is entitled to be paid.

Payment

Dr. Dividend payable, Cr. Cash — the liability and the cash both fall.

The is the only date that changes anything on the books — the board's vote creates a real liability and reduces retained earnings immediately, before a dollar moves.

The just draws a line: whoever holds shares on that date gets paid, with no accounting effect of its own. The settles the liability already recorded — cash and the payable fall together, so total equity does not move again.