The board of directors of Elston 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 9,000 Cash dividends payable 9,000 B. Retained earnings 9,000 Cash 9,000 C. Retained earnings 10,000 Cash dividends payable 10,000 D. Retained earnings 10,000 Cash 10,000
The board of directors of Elston 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 9,000 Cash dividends payable 9,000 B. Retained earnings 9,000 Cash 9,000 C. Retained earnings 10,000 Cash dividends payable 10,000 D. Retained earnings 10,000 Cash 10,000
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 11EA: Nutritious Pet Food Companys board of directors declares a cash dividend of $1.00 per common share...
Related questions
Question
The board of directors of Elston 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.
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9,000
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Cash dividends payable
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9,000
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B.
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Retained earnings
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9,000
|
|
|
Cash
|
|
9,000
|
|
|
|
|
C.
|
Retained earnings
|
10,000
|
|
|
Cash dividends payable
|
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10,000
|
|
|
|
|
D.
|
Retained earnings
|
10,000
|
|
|
Cash
|
|
10,000
|
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