Dividend Record Date

Brian Krogol
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Alright so the next important date is the date of record and this basically says that whoever owns the stock as of the date of record will receive the dividend. Okay so the date of record is really just a point where the that says who's gonna get the dividend. Okay so look in the example on March 14 the board of directors of the apartment Debo announces a dividend of 300,000. That was the declaration date right from the previous journal entry. The directors also announced the record date would be april 4th. So these announcements usually go hand in hand but notice March 14th is the declaration date. But april 4th is the date of record because you can imagine people are gonna keep trading the stock every day. Right on the open market people are gonna be buying and selling the stock. So whoever owns the stock on april 4th is the person who's going to receive the dividend. Okay so whoever is holding the stock on april 4th receives the dividend but that doesn't mean that they're gonna receive the dividend on april 4th. There's gonna be another date that we're going to discuss. That's the payment date. So april 4th. The journal entry that gets made is no journal entry. There's no journal entry on the date of record on the date of record. It's just a memorandum that we know okay who's going to receive the stock, who's gonna receive the dividend is whoever is holding the stock as of april 4th. Okay so it's important to note, we've got three important dates. We've got the declaration date where we make a journal entry, the date of record. We don't make a journal entry and then the payment date. We are going to make a journal entry. So let's check that out in the next video.