Hutter Corporation Declared a $0

question 66

Multiple Choice

Hutter Corporation declared a $0.50 per share cash dividend on its common shares.The company has 20,000 shares authorized,9,000 shares issued,and 8,000 shares of common stock outstanding.The journal entry to record the dividend payment is:

• A)Debit Retained Earnings $4,000;credit Common Dividends Payable $4,000.
• B)Debit Common Dividends Payable $4,000;credit Cash $4,000.
• C)Debit Retained Earnings $4,500;credit Common Dividends Payable $4,500.
• D)Debit Common Dividends Payable $4,500;credit Cash $4,500.
• E)Debit Retained Earnings $10,000;credit Common Dividends Payable $10,000.

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