On February 16,Hawthorne Co.declares a $1.36 dividend to be paid on April 5.There are 1,900,000 shares of common stock issued and outstanding.The entry recorded by the company on April 5 includes a debit to:
A)A debit to Dividends Payable and a credit to Cash for $2,720,000.
B)A debit to Dividends and a credit to Dividends Payable for $2,584,000.
C)A debit to Dividends Payable and a credit to Cash for $2,584,000.
D)A debit to Dividends and a credit to Dividends Payable for $2,720,000.

Question

Quizplus · Accepted Answer

The entry to record the payment of the dividend on April 5 includes a debit to Dividends Payable and a credit to Cash for $2,584,000 (1,900,000 shares × $1.36 per share).