Question 2

1. Table 10-1 Lewis & Clark, Inc., has 100,000 shares of common stock authorized, 25,000 shares issued and outstanding. On September 1, 20X9, the company declared a $3.00 per share dividend for those of record on October 1, 20X9, to be paid on November 1, 20X9. Referring to Table 10-1, which of the following journal entries would Lewis & Clark, Inc., make on September 1, 20X9?

   		Retained Earnings 75,000 Cash 75,000
   		Retained Earnings 300,000 Dividends Payable 300,000
   		Retained Earnings 300,000 Cash 300,000
   		Dividends Payable 75,000 Cash 75,000
   		Retained Earnings 75,000 Dividends Payable 75,000