Question
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend payment is:
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Debit Retained Earnings $10,000; credit Common Dividend Payable $10,000.
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Debit Retained Earnings $4,000; credit Common Dividend Payable $4,000.
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Debit Common Dividend Payable $4,500; credit Cash $4,500.
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Debit Common Dividend Payable $4,000; credit Cash $4,000.
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Debit Retained Earnings $4,500; credit Common Dividend Payable $4,500.
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Intermediate Accounting
Authors: kieso, weygandt and warfield.
14th Edition
9780470587232, 470587288, 470587237, 978-0470587287
