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notka56 [123]
3 years ago
14

Hutter corporation declared a $0.50 per share cash dividend on its common shares. the company has 37,000 shares authorized, 19,2

00 shares issued, and 14,800 shares of common stock outstanding. the journal entry to record the dividend declaration is:
Business
1 answer:
Maurinko [17]3 years ago
5 0
The corporation is required to record entry for cash dividend declaration.  Only the common stock outstanding or the 14,800 shares are entitled to receive dividends.  Thus, the journal entry to record the dividend declaration is as follows:
Debit: Retained Earnings $7,400.00
Credit: Dividends Payable $7,400.00
<em>To record cash dividend declaration</em>
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