Aris company declares a cash dividend of $1.00 per share on its 12.000 common sharesoutstanding. 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.

Given that Cash dividend = $ 1.00 per share Common shares outstanding = 12000

Answered: Aris company declares a cash dividend…

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

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

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