The Board of Directors of GHI Corporation declared an annual dividend of P5 per share on 50,000 shares of P10 par value ordinary shares issued and outstanding at their meeting on December 10, 2020. This is payable on March 31,2021 to shareholders of record on December 31,2020.The correct entry to record to be made on December 10,2020:* Debit Dividends Payable P500,000 and Credit Cash P500,000 O No entry should be made Debit Retained Earnings P250,000 and Credit Dividends Payable P250,000 Debit Dividends Payable P250,000 and Credit Cash P250,000
The Board of Directors of GHI Corporation declared an annual dividend of P5 per share on 50,000 shares of P10 par value ordinary shares issued and outstanding at their meeting on December 10, 2020. This is payable on March 31,2021 to shareholders of record on December 31,2020.The correct entry to record to be made on December 10,2020:* Debit Dividends Payable P500,000 and Credit Cash P500,000 O No entry should be made Debit Retained Earnings P250,000 and Credit Dividends Payable P250,000 Debit Dividends Payable P250,000 and Credit Cash P250,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![The Board of Directors of GHI Corporation declared an annual dividend of P5 per
share on 50,000 shares of P10 par value ordinary shares issued and outstanding
at their meeting on December 10, 2020. This is payable on March 31,2021 to
shareholders of record on December 31,2020.The correct entry to record to be
made on December 10,2020 :*
Debit Dividends Payable P500,000 and Credit Cash P500,000
No entry should be made
O Debit Retained Earnings P250,000 and Credit Dividends Payable P250,000
O Debit Dividends Payable P250,000 and Credit Cash P250,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faa82f0ee-a977-4aef-9a02-27ebfcae9d34%2Ff216cdbd-ec41-49d8-a902-a71cd407472e%2Fimrmfxq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Board of Directors of GHI Corporation declared an annual dividend of P5 per
share on 50,000 shares of P10 par value ordinary shares issued and outstanding
at their meeting on December 10, 2020. This is payable on March 31,2021 to
shareholders of record on December 31,2020.The correct entry to record to be
made on December 10,2020 :*
Debit Dividends Payable P500,000 and Credit Cash P500,000
No entry should be made
O Debit Retained Earnings P250,000 and Credit Dividends Payable P250,000
O Debit Dividends Payable P250,000 and Credit Cash P250,000
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education