A company's board of directors declared a $0.50 per share cash dividend on its $3 par common stock. On the date of declaration, there were 44,000 shares authorized, 18,000 shares issued, and 5,000 shares held as treasury stock. What is the entry when the dividends are declared? A. Dividends 6,500 Dividends Payable 6,500 B. Dividends 6,500 Cash 6,500 C. Dividends 22,000 Dividends Payable 22,000 D. Dividends 9,000 Cash 9,000
A company's board of directors declared a $0.50 per share cash dividend on its $3 par common stock. On the date of declaration, there were 44,000 shares authorized, 18,000 shares issued, and 5,000 shares held as treasury stock. What is the entry when the dividends are declared? A. Dividends 6,500 Dividends Payable 6,500 B. Dividends 6,500 Cash 6,500 C. Dividends 22,000 Dividends Payable 22,000 D. Dividends 9,000 Cash 9,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company's board of directors declared a $0.50 per share cash dividend on its $3 par common stock. On the date of declaration, there were 44,000 shares authorized, 18,000 shares issued, and 5,000 shares held as
What is the entry when the dividends are declared?
| A. | Dividends | 6,500 | |
| Dividends Payable | 6,500 | ||
| B. | Dividends | 6,500 | |
| Cash | 6,500 | ||
| C. | Dividends | 22,000 | |
| Dividends Payable | 22,000 | ||
| D. | Dividends | 9,000 | |
| Cash | 9,000 |
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