At Year-End, the Board of Directors of Mega Motors Ltd

question 27

Multiple Choice

At year-end, the Board of Directors of Mega Motors Ltd declared a final dividend of 4c per share on 80 000 ordinary shares. Early in the next year, the dividend was paid. Which of the following is the general journal entry to record the payment of the dividend?

• A) Debit retained earnings $3200; credit final dividend payable $3200
• B) Debit retained earnings $3200; credit bank $3200
• C) Debit final dividend payable $3200; credit bank $3200
• D) Debit bank $3200; credit final dividend payable $3200

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Definitions:

Arsenopyrite

A metallic gray, natural mineral compound of arsenic, iron, and sulfur, often associated with the occurrence of gold.

Formula

A concise way of expressing information symbolically, as in a mathematical or chemical formula representing the composition of substances.

FeAsS

Also known as Arsenopyrite, it is a mineral consisting of iron, arsenic, and sulfur.

Realgar

A red-orange arsenic sulfide mineral, historically used as a pigment and in fireworks.