Fetzer Company declared a $0.25 per share cash dividend. The company has 360,000 shares authorized, 342,000 shares issued, and 14,400 shares in treasury stock. The journal entry to record the dividend declaration is:
A. Debit Retained Earnings $90,000; credit Common Dividends Payable $90,000.
B. Debit Retained Earnings $85,500; credit Common Dividends Payable $85,500.
C. Debit Common Dividends Payable $85,500; credit Cash $85,500.
D. Debit Common Dividends Payable $81,900; credit Cash $81,900.
E. Debit Retained Earnings $81,900; credit Common Dividends Payable $81,900.
Answer: E
You might also like to view...
The "FIFO" and "LIFO" inventory costing methods are based on assumed cost flows that are not required to reflect the actual physical movement of merchandise within the company
a. True b. False Indicate whether the statement is true or false
Which of the following steps involves a plan being proposed with respect to profitability and market share objectives for a specified planning horizon?
A) marketing budget B) situation analysis C) SWOT analysis D) strategic market plan E) revenue plan
Under the indirect method, gains or losses from the sale of equipment used in operations would appear as adjustments in the cash flows from operating activities section of the statement of cash flows
Indicate whether the statement is true or false
Cottle Company has total assets of $220,000 and total liabilities of $70,000. The company's debt-to-equity ratio is closest to
A) .32 to 1 B) .68 to 1 C) .24 to 1 D) .47 to 1