Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend payment is:
A. Debit Common Dividends Payable $4,500; credit Cash $4,500.
B. Debit Retained Earnings $10,000; credit Common Dividends Payable $10,000.
C. Debit Retained Earnings $4,000; credit Common Dividends Payable $4,000.
D. Debit Retained Earnings $4,500; credit Common Dividends Payable $4,500.
E. Debit Common Dividends Payable $4,000; credit Cash $4,000.
Answer: E
You might also like to view...
Lush Lawn, Inc. produces and sells electric lawn trimmers for $120 each. The variable costs of each mower total $80 while total monthly fixed costs are $6,000. Current monthly sales are $48,000. Required:1) Compute the company's current break-even point in units and dollars.2) What is the company's current margin of safety in units, dollars, and percentage?
What will be an ideal response?
Variable costing allows a manager to classify controllable costs as
A) variable and fixed costs. B) avoidable and unavoidable costs. C) necessary and unnecessary costs. D) short-term and long-term variable costs.
The last step in the accounting record-keeping process is preparing the balance sheet from amounts in the balance sheet accounts
Indicate whether the statement is true or false
Unless otherwise unambiguously indicated by language or circumstance, an offer to make a sales or lease contract may be accepted in any manner and by any reasonable medium of acceptance.
Answer the following statement true (T) or false (F)