Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration,
The board of directors of Capstone Inc. declared a $0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock.
What is the entry when the dividends are declared?
A.Dividends9,000Dividends Payable9,000
B.Dividends9,000Cash9,000
C.Dividends12,000Dividends Payable12,000
D.Dividends12,000Cash12,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started