LO 9) Fetzer Company declared a $0.50 per share cash dividend. The company has 2

Question

LO 9) Fetzer Company declared a $0.50 per share cash dividend. The company has 260,000 shares authorized, 247,000 shares issued, and 10,400 shares in treasury stock. The journal entry to record the dividend declaration is:

Multiple Choice

Debit Retained Earnings $123,500; credit Common Dividends Payable $123,500.

Debit Retained Earnings $130,000; credit Common Dividends Payable $130,000.

Debit Retained Earnings $118,300; credit Common Dividends Payable $118,300.

Debit Common Dividends Payable $118,300; credit Cash $118,300.

Debit Common Dividends Payable $123,500; credit Cash $123,500.

Explanation / Answer

Debit Retained Earnings $118,300; credit Common Dividends Payable $118,300. Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Amount Shares Issued                         247,000.00 Treasury stock                         (10,400.00) Shares outstanding                         236,600.00 Dividend = 236,600*.50                         118,300.00

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