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A Company Declared a $0

Question 133

Multiple Choice

A company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 8,000 treasury shares. The journal entry to record the dividend declaration is:


A) Debit Retained Earnings $104,500; credit Ordinary Dividend Payable $104,500.
B) Debit Ordinary Dividend Payable $104,500; credit Cash $104,500.
C) Debit Retained Earnings $100,100; credit Ordinary Dividend Payable $100,100.
D) Debit Ordinary Dividend Payable $100,100; credit Cash $100,100.
E) Debit Retained Earnings $110,000; credit Ordinary Dividend Payable $110,000.

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