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On April 3, Jim's Planters Declares a $5 Cash Dividend

Question 59

Multiple Choice

On April 3, Jim's Planters declares a $5 cash dividend per share on 6,000 shares issued and outstanding. What is the journal entry to record this transaction?


A) Increase to Cash for $30,000 and decrease to Dividends Payable for $30,000
B) Decrease to Retained Earnings for $30,000 and increase to Dividends Payable for $30,000
C) Increase to Retained Earnings for $30,000 and increase to Cash for $30,000
D) Increase to Dividends Payable for $30,000 and decrease to Cash for $30,000

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