Fetzer Company declared a $0.35 per share cash dividend. The company has 400,000 shares authorized, 380,000 shares issued, and 16,000 shares in treasury stock. The journal entry to record the payment of the dividend is:

A. Debit Retained Earnings $127,400; credit Common Dividends Payable $127,400.
B. Debit Common Dividends Payable $127,400; credit Cash $127,400.
C. Debit Retained Earnings $140,000; credit Common Dividends Payable $140,000.
D. Debit Common Dividends Payable $133,000; credit Cash $133,000.
E. Debit Retained Earnings $133,000; credit Common Dividends Payable $133,000.


Answer: B

Business

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