Which of the following would be included in the entry to record the payment of a previously declared dividend of $0.25 per share on 12 500 ordinary shares?
A)Dividends payable would be debited for $3 125.
B)Retained earnings would be debited for $3 125.
C)Cash would be debited for $3 125.
D)Dividends payable would be credited for $3 125.

Question

Quizplus · Accepted Answer

The payment of a previously declared dividend involves debiting Dividends Payable to remove the liability and crediting Cash to reflect the outflow of funds.

Which of the Following Would Be Included in the Entry