Question
On July 8, Smith Inc. declared cash dividends of $2 per share. The company has 60,000 shares of common stock outstanding. On the payment date,
On July 8, Smith Inc. declared cash dividends of $2 per share. The company has 60,000 shares of common stock outstanding. On the payment date, August 30, what is the correct journal entry to record payment of the dividends.
Question options:
DR Dividends Payable (or Retained Earnings) $120,000 CR Common Stock $120,000
DR Dividends Payable (or Retained Earnings) $120,000 CR Dividends Expense $120,000
DR Dividends Payable (or Retained Earnings) $120,000 CR Cash $120,000 D
R Cash $120,000 CR Dividends Payable (or Retained Earnings) $120,000
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Low Income Housing Tax Credit IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
978-1304135087
