On July 1, a board of directors declared a $3 per share cash dividend, payable on July 31 to all common stockholders of record on Juy 15. The company has 10,000 shares of common stock authorized, 1,000 shares issued and 200 shares in the treasury. The entry to record the dividend declaration increases a an expense account by $3,000. b a stockholders' equity account by $3,000. c a liability account by $2,400. d an asset account by $2,400.
On July 1, a board of directors declared a $3 per share cash dividend, payable on July 31 to all common stockholders of record on Juy 15. The company has 10,000 shares of common stock authorized, 1,000 shares issued and 200 shares in the treasury. The entry to record the dividend declaration increases a an expense account by $3,000. b a stockholders' equity account by $3,000. c a liability account by $2,400. d an asset account by $2,400.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On July 1, a board of directors declared a $3 per share cash dividend, payable on July 31 to all common stockholders of record on Juy 15. The company has 10,000 shares of common stock authorized, 1,000 shares issued and 200 shares in the treasury. The entry to record the dividend declaration increases
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a
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an expense account by $3,000.
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b
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a
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c
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a liability account by $2,400.
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d
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an asset account by $2,400.
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