Springer Co B) C) D)

question 14

Multiple Choice

Springer Co.was incorporated on January 1, 2019, at which time 500,000 shares of $1 par value common stock were authorized, and 210,000 of these shares were issued for $9 per share.Net income for the year ended December 31, 2019, was $1,900,000.Springer Co.'s board of directors declared dividends of $1.40 per share of common stock on December 31, 2019, payable on January 27, 2020. The entry to record the declaration of dividends on December 31, 2019 is:

• A) \[\begin{array} { | r | l | c | c | }
• \hline \text { Dr. } & \text { Retained Earnings } & 294,000 & \\
• \hline \text { Cr. } & \text { Dividends Payable } & & 294,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | r | l | c | c | }
• \hline \text { Dr. } & \text { Cash } & 294,000 & \\
• \hline \text { Cr. } & \text { Dividends Payable } & & 294,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | r | l | c | c | }
• \hline \text { Dr. } & \text { Retained Earnings } & 294,000 & \\
• \hline \text { Cr. } & \text { Cash } & & 294,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | r | l | c | c | }
• \hline \text { Dr. } & \text { Dividends Payable } & 294,000 & \\
• \hline \text { Cr. } & \text { Cash } & & 294,000 \\
• \hline
• \end{array}\]

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Definitions:

Clamping

The action of securing objects tightly together using a clamp to hold, support, or compress them during various operations or processes.

Grasping

The action of seizing or holding firmly, often used in contexts of manipulation of objects or tools.

Cutting

The act of severing or dividing something with a sharp instrument.

Dilating/probing

The process of expanding an opening or passage in the body, often for medical examination or treatment purposes.