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A company's board of directors declared a $0.50 per share cash dividend on its $3 par common stock. On the date of declaration, there were 44,000 shares authorized, 18,000 shares issued, and 5,000 shares held as treasury stock. What is the entry when the dividends are declared?   A. Dividends 6,500     Dividends Payable   6,500 B. Dividends 6,500     Cash   6,500 C. Dividends 22,000     Dividends Payable   22,000 D. Dividends 9,000     Cash   9,000

A company's board of directors declared a $0.50 per share cash dividend on its $3 par common stock. On the date of declaration, there were 44,000 shares authorized, 18,000 shares issued, and 5,000 shares held as treasury stock. What is the entry when the dividends are declared?   A. Dividends 6,500     Dividends Payable   6,500 B. Dividends 6,500     Cash   6,500 C. Dividends 22,000     Dividends Payable   22,000 D. Dividends 9,000     Cash   9,000

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 10EA: Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share...
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A company's board of directors declared a $0.50 per share cash dividend on its $3 par common stock. On the date of declaration, there were 44,000 shares authorized, 18,000 shares issued, and 5,000 shares held as treasury stock.

What is the entry when the dividends are declared?

 

A. Dividends 6,500  
  Dividends Payable   6,500
B. Dividends 6,500  
  Cash   6,500
C. Dividends 22,000  
  Dividends Payable   22,000
D. Dividends 9,000  
  Cash   9,000
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