Question

Aaron company has 80,000 shares of $10 par common stock outstanding. on may 25, aaron company declared a $1.50 cash dividend. the market price of the stock on may 25 was $17 per share. the journal entry to record the cash dividend would include

Answer 1

would include a debit to cash

Dividends for $120,000. The journal entry to record the cash dividend would include a debit to Cash Dividends for $120,000 and a credit to Cash Dividends Payable for $120,000

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