On February 16,Hawthorne Co.declares a $0.68 dividend to be paid on April 5.Hawthorne has 1,900,000 shares of common stock issued and outstanding.The entry recorded by the company on February 16 includes a debit to:
A)Dividends Payable and a credit to Cash for $1,360,000.
B)Dividends and a credit to Dividends Payable for $1,292,000.
C)Dividends Payable and a credit to Cash for $1,292,000.
D)Dividends and a credit to Dividends Payable for $1,360,000.

Question

Quizplus · Accepted Answer

The entry to record the declaration of the dividend on February 16 includes a debit to Dividends and a credit to Dividends Payable for $1,292,000 (1,900,000 shares × $0.68 per share).