Question

On January 1, 20x6, Susie's Plumbers, Inc. declared a $1.00 per share dividend payable on February 1, to holders of record on January 15. Before the dividend was declared, the company had 100,000 shares of $10 par value stock outstanding. On the date of declaration, the journal entry to record the dividend would include credit to retained earnings of $10,000. debit to retained earnings of $100,000. There would be no journal entry on this date. debit to dividends payable of $ 100,000. None of the above

          On January 1, 20x6, Susie's Plumbers, Inc. declared a $1.00 per share dividend payable on February 1, to holders of record on January 15. Before the
dividend was declared, the company had 100,000 shares of $10 par value stock outstanding. On the date of declaration, the journal entry to record the
dividend would include
credit to retained earnings of $10,000.
debit to retained earnings of $100,000.
There would be no journal entry on this date.
debit to dividends payable of $ 100,000.
None of the above

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On January 1, 20x6, Susie's Plumbers, Inc. declared a 1.00 per share dividend payable on February 1, to holders of record on January 15. Before the
dividend was declared, the company had 100,000 shares of10 par value stock outstanding. On the date of declaration, the journal entry to record the
dividend would include
credit to retained earnings of 10,000.
debit to retained earnings of100,000.
There would be no journal entry on this date.
debit to dividends payable of 100,000.
None of the above

Added by Mary A.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Kevra Barney

06/25/2022

Step 1

To calculate the total amount of dividends to be paid out, we multiply the dividend per share ($1.00) by the total number of shares outstanding (100,000). Total dividends = $1.00/share * 100,000 shares = $100,000 Show more…

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On January 1, 20x6, Susie's Plumbers, Inc. declared a $1.00 per share dividend payable on February 1, to holders of record on January 15. Before the dividend was declared, the company had 100,000 shares of $10 par value stock outstanding. On the date of declaration, the journal entry to record the dividend would include a credit to retained earnings of $100,000.

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