Springer Company was incorporated on January 1, 2022, at which time 500,000 shares of $1 par value common stock were authorized, and 210,000 of these shares were issued for $9 per share. Net income for the year ended December 31, 2022, was $1,900,000. Springer Company's board of directors declared dividends of $1.40 per share of common stock on December 31, 2022, payable on January 27, 2023. The entry to record the payment of dividends on January 27, 2023 is: Multiple Choice о Debit Credit Debit Credit Debit Credit Debit Credit Retained Earnings Dividends Payable Cash Dividends Payable Retained Earnings Cash Dividends Payable Cash 294,000 294,000 294,000 294,000 294,000 294,000 294,000 294,000
Springer Company was incorporated on January 1, 2022, at which time 500,000 shares of $1 par value common stock were authorized, and 210,000 of these shares were issued for $9 per share. Net income for the year ended December 31, 2022, was $1,900,000. Springer Company's board of directors declared dividends of $1.40 per share of common stock on December 31, 2022, payable on January 27, 2023. The entry to record the payment of dividends on January 27, 2023 is: Multiple Choice о Debit Credit Debit Credit Debit Credit Debit Credit Retained Earnings Dividends Payable Cash Dividends Payable Retained Earnings Cash Dividends Payable Cash 294,000 294,000 294,000 294,000 294,000 294,000 294,000 294,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I cannot tell if it is A or D from the answer choices.
Transcribed Image Text:Springer Company was incorporated on January 1, 2022, at which time 500,000 shares of $1 par value common stock were
authorized, and 210,000 of these shares were issued for $9 per share. Net income for the year ended December 31, 2022,
was $1,900,000. Springer Company's board of directors declared dividends of $1.40 per share of common stock on
December 31, 2022, payable on January 27, 2023.
The entry to record the payment of dividends on January 27, 2023 is:
Multiple Choice
о
Debit
Credit
Debit
Credit
Debit
Credit
Debit
Credit
Retained Earnings
Dividends Payable
Cash
Dividends Payable
Retained Earnings
Cash
Dividends Payable
Cash
294,000
294,000
294,000
294,000
294,000
294,000
294,000
294,000
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