Answer:
Jul-01
Dr Retained Earnings $324,800
Cr Common stock dividend distributable $232,000
Cr Paid-in capital in excess of par value - Common stock 92,800
Explanation:
Preparation of the journal entry to record the dividend declaration is:
Jul-01
Dr Retained Earnings $324,800
(58,000 shares x 20% x $28)
Cr Common stock dividend distributable $232,000
(58,000 shares x 20% x $20)
Cr Paid-in capital in excess of par value - Common stock 92,800
(58,000 shares x 20% x $8)
Scenario 2 would be correct
Sonic corporation, founded as Sonic drive-In and more generally called Sonic "The force-In," is an American power-in speedy meals restaurant chain owned with the aid of inspire manufacturers, the discern employer of Arby's and Buffalo Wild Wings.
The agency, based by way of Troy N. Smith Sr. (1922–2009), opened its first location in 1953, below the name top Hat drive-In. Initially, a stroll up root beer stand out of doors a log cabin steakhouse selling soda, hamburgers, and hotdogs; Sonic, presently has three,549 locations inside the united states.
The employer's core products include the "Chili Cheese Coney", "Sonic Cheeseburger combo", "Sonic Blasts", "master Shakes", and "Wacky p.c. youngsters food." The organization also has a breakfast menu. although Sonic has operated because the early 1950s, Sonic Corp. incorporated in Delaware in 1990. It has its company headquarters in Oklahoma city; the headquarters building features a dine-in Sonic eating place in an adjacent building. prior to its acquisition by way of encourage manufacturers, its inventory traded on NASDAQ with the symbol SONC. Most eating places are owned and operated with the aid of franchisees. Total 2016 sales were around $100 million with internet profits of $18 million.
Learn more about Sonic Corporation here:-
brainly.com/question/25583824
#SPJ4
