The board of directors declared a $2 per share cash dividend on common stock and the corporation had 5,000 shares authorized and 4,000 shares outstanding and make a journal entry. The journal entry for the dividend payment would be

a.

a debit to Cash Dividends Payable for $8,000 and a credit to Cash for $8,000.

b.

a debit to Cash Dividends for $10,000 and a credit to Common Dividends Payable for $10,000.

c.

a debit to Cash Dividends for $8,000 and a credit to Common Dividends Payable for $8,000.

d.

a debit to Cash Dividends Payable for $10,000 and a credit to Cash for $10,000.

Clear my choice

Paid-in capital from sale of treasury stock could appear as an addition or deduction on the stockholders' equity section of the balance sheet.

Select one:

True

False

17. The ratio of net income available to common stockholders to the average number of shares of common stock outstanding during the year is the ________.