Question

Fetzer Company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8,000 shares in treasury stock. The journal entry to record the payment of the dividend is: Multiple Choice Debit Retained Earnings $104,500; credit Common Dividends Payable $104,500. Debit Common Dividends Payable $104,500; credit Cash $104,500. Debit Retained Earnings $100,100; credit Common Dividends Payable $100,100. Debit Common Dividends Payable $100,100; credit Cash $100,100. Debit Retained Earnings $110,000; credit Common Dividends Payable $110,000. g

Answer 1

Answer:

Debit Retained Earnings $104,500; credit Common Dividends Payable $104,500.

Explanation:

Dividends Payable = 190,000 x $0.55 = $104,500