Find the answer to this question here. Super convenient online flashcards for studying and checking your answers!

(Correct Answer Below)

Reveal the answer to this question whenever you are ready.

The Board Of Directors Of Capstone Inc. Declared A

$0.60 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 20,000 shares issued, and 5,000 shares held as treasury stock. What is the entry for the dividend declaration? A. Retained earnings = 9k dr Dividends payable = 9k cr B. Retained earnings = 9k dr Cash = 9k cr C. Retained earnings = 9k dr Dividends payable = 9k cr B. Retained earnings = 10k dr Cash = 10k cr
Front

Advertisement

A. Retained earnings = 9k dr Dividends payable = 9k cr [Retained earnings [(20k-5k) x 60] = 9k dr Dividends Payable = 9k cr]

About the flashcard:

This flashcard is meant to be used for studying, quizzing and learning new information. Many scouting web questions are common questions that are typically seen in the classroom, for homework or on quizzes and tests. Flashcards vary depending on the topic, questions and age group. The cards are meant to be seen as a digital flashcard as they appear double sided, or rather hide the answer giving you the opportunity to think about the question at hand and answer it in your head or on a sheet before revealing the correct answer to yourself or studying partner. Some questions will include multiple choice options to show you the options involved and other questions will just have the questions and corrects answers. Simply reveal the answer when you are ready to check your work. Absolutely no cheating is acceptable.