**Hutter Corporation Dividend Declaration**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 Retained Earnings $4,000; credit Common Dividend Payable $4,000- **B.** Debit Common Dividend Payable $4,000; credit Cash $4,000- **C.** Debit Retained Earnings $4,500; credit Common Dividend Payable $4,500- **D.** Debit Common Dividend Payable $4,500; credit Cash $4,500- **E.** Debit Retained Earnings $10,000; credit Common Dividend Payable $10,000**Explanation:**When declaring a dividend, companies must ensure they have the necessary retained earnings to cover the dividend payment, and the amount of cash available to fulfill this payment. For Hutter Corporation, the dividend of $0.50 per share for 8,000 outstanding shares totals $4,000. Therefore, the journal entries needed will affect the retained earnings and the cash accounts.Note: This content is formatted for educational purposes to guide accounting students or individuals interested in financial accounting principles.

Cash dividends on common stock are payments made by a company to its common shareholders, typically…

Answered: 8. Hutter Corporation declared a $0.50…

FINANCIAL ACCOUNTING

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Chapter1: Financial Statements And Business Decisions

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On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$10 par value, 80,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity 1. Prepare journal entries to record the following transactions for Sherman Systems. $ 800,000 256,000 928,000 $ 1,984,000 a. Purchased 5,800 shares of its own common stock at $33 per share on October 11. b. Sold 1,200 treasury shares on November 1 for $39 cash per share. c. Sold all remaining treasury shares on November 25 for $32 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase. ✓ Answer is not complete. Complete this question by entering your answers in the tabs below. Required Required 1 2 Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,800 shares of its own common stock at $33 per share on October 11. b. Sold 1,200…
Newly formed S&J Iron Corporation has 161,000 shares of $3 par common stock authorized. On March 1, Year 1, S&J Iron issued 11,500 shares of the stock for $10 per share. On May 2, the company issued an additional 20,000 shares for $21 per share. S&J Iron was not affected by other events during Year 1. Required a. Record the transactions in a horizontal statements model. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). If an element was not affected by the event, leave the cell blank. b. Determine the amount S&J Iron would report for common stock on the December 31, Year 1, balance sheet. c. Determine the amount S&J Iron would report for paid-in capital in excess of par. d. What is the total amount of capital contributed by the owners? e. What amount of total assets would S&J Iron report on the December 31, Year 1, balance sheet? Complete this question by entering your answers in the tabs below. Req A…
A company's board of directors votes to declare a cash dividend of $1.70 per share of common stock. The company has 34,000 shares authorized, 29,000 issued, and 28,500 shares outstanding. The total amount of the cash dividend is:
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5. Magenta Corporation declared $0.70 per share cash dividends on September 18. The dividends were recorded and paid on September 23 and September 29, respectively. Magenta Corporation had 50,000 shares outstanding with par value of $1. The journal entry to record the transaction on September 29 is … a. Cash Dividends $35,000 Dividends Payable $35,000 b. No journal entry required on this date c. Retained Earnings $50,000 Cash Dividends $50,000 d. Dividends Payable $35,000 Cash $35,000
XYZ Company has 100,000 shares of stock outstanding. On January 1, 200X XYZ Company declared a cash dividend of .50 per share to be paid on January 31. On January 1 XYZ Company will make the following journal entry: Credit cash $50,000and debit dividends declared $50,000. Debit dividends declared $50,000 and credit dividends payable $50,000. No entry is made until January 31. Debit cash $50,000 and credit dividends payable $50,000.
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