On November 1, 2017, Oster, Inc. declared a dividend of $4.50 per share. Oster, Inc. has 23,000 shares of common stock outstanding and no preferred stock. Which of the following is the journal entry needed to record the declaration of the dividend?

A) Debit Dividends Payable-Common $103,500, and credit Retained Earnings $103,500.
B) Debit Cash Dividends $103,500, and credit Cash $103,500.
C) Debit Cash Dividends $103,500, and credit Dividends Payable-Common $103,500.
D) Debit Cash $103,500, and credit Dividends Payable-Common $103,500.


C .C) Dividends Payable = Dividends per share x No. of shares = $4.50 x 23,000 = $103,500

Business

You might also like to view...

A hybrid costing system would be appropriate for a company that manufactures cake flour

Indicate whether the statement is true or false

Business

When does a writer include a Works Cited in a formal proposal?

Business

Which of the following is the last step in the daily control over cash receipts by mail?

A) A mailroom employee sends all customer checks to the treasurer who has the cashier make the bank deposit. B) The controller opens the mail and sends the remittance advices to the accounting department. C) The controller compares the records of the day's bank deposit amount from the treasurer and the debit to cash from the accounting department. D) The accounting department prepares journal entries to cash and the customers' accounts.

Business

If Tom and Tim are tenants in common, they each own a specific half of the property

a. True b. False Indicate whether the statement is true or false

Business