QUESTION 21 The board of directors declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2017. The dividend is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The effects of the journal entry to record the payment of the dividend on August 15, 2017, are to O a. increase stockholders' equity and increase liabilities. O b. decrease stockholders' equity and decrease liabilities. O c. decrease liabilities and decrease assets. O d. increase stockholders' equity and decrease assets.
QUESTION 21 The board of directors declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2017. The dividend is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The effects of the journal entry to record the payment of the dividend on August 15, 2017, are to O a. increase stockholders' equity and increase liabilities. O b. decrease stockholders' equity and decrease liabilities. O c. decrease liabilities and decrease assets. O d. increase stockholders' equity and decrease assets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 21?
Transcribed Image Text:QUESTION 21
The board of directors declared a cash dividend of $1.50 per share on 42,000 shares of common stock on July 15, 2017. The dividend
is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The effects of the journal entry to record the payment of
the dividend on August 15, 2017, are to
O a. increase stockholders' equity and increase liabilities.
O b. decrease stockholders' equity and decrease liabilities.
O c. decrease liabilities and decrease assets.
O d. increase stockholders' equity and decrease assets.
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