The Board of Directors Declared a $2 Per Share Cash

question 76

Multiple Choice

The board of directors declared a $2 per share cash dividend on common stock and the corporation had 5,000 shares authorized and 4,000 shares outstanding and make a journal entry. The journal entry for the dividend payment would be

• A) a debit to Cash Dividends for $8,000 and a credit to Common Dividends Payable for $8,000.
• B) a debit to Cash Dividends for $10,000 and a credit to Common Dividends Payable for $10,000.
• C) a debit to Cash Dividends Payable for $8,000 and a credit to Cash for $8,000.
• D) a debit to Cash Dividends Payable for $10,000 and a credit to Cash for $10,000.

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Definitions:

Ethical Conduct

Refers to the guidelines or principles that govern the right behavior and decision-making processes, often based on moral standards.

Parole

The early release of a prisoner who agrees to abide by certain conditions, monitored by a parole officer, as part of the rehabilitation and reintegration into society.

Lifetime Sentences

Punishments that involve incarceration for the remainder of the convicted person's life, often imposed for the most severe crimes.

Abolished

Refers to the formal elimination or ending of a system, practice, or institution.