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svet-max [94.6K]
3 years ago
8

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 30,000 shares authorized, 15,0

00 shares issued, and 12,000 shares of common stock outstanding. The journal entry to record the dividend declaration is:
Business
1 answer:
Natasha_Volkova [10]3 years ago
5 0

Answer:

Dr Retained Earnings $6,000

Cr Common Dividends Payable $6,000

Explanation:

Preparation of the journal entry to record the dividend declaration

Based on the information given we were told that the Corporation declared the amount of $0.50 per share cash dividend on common shares in which 12,000 shares of the common stock are outstanding, hence The journal entry to record the dividend declaration is:

Dr Retained Earnings $6,000

Cr Common Dividends Payable $6,000

(12,000*$0.50)

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