Aris company declares a cash dividend of $1.00 per share on its 12.000 common shares outstanding. The journal entry to record the payment of the cash dividend is:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Aris company declares a cash dividend of $1.00 per share on its 12.000 common shares
outstanding. The journal entry to record the payment of the cash dividend is:
(A) Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000.
(B) Debit Common Dividend Payable $12,000; credit Cash $12,000.
(C) Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000.
(D) Debit Dividend Expense $12,000; credit Cash $12,000.
Transcribed Image Text:Aris company declares a cash dividend of $1.00 per share on its 12.000 common shares outstanding. The journal entry to record the payment of the cash dividend is: (A) Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000. (B) Debit Common Dividend Payable $12,000; credit Cash $12,000. (C) Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000. (D) Debit Dividend Expense $12,000; credit Cash $12,000.
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