On February 16, a Company Declares a 34 $\prime$ Dividend to Be Paid on April 5

question 134

Multiple Choice

On February 16, a company declares a 34 $\prime$ dividend to be paid on April 5. There are 2 million shares of common stock issued and 100,000 shares of treasury stock. What does the company record in February?

• A) A debit to Dividends Payable and a credit to Cash for $680,000.
• B) A debit to Dividends Declared and a credit to Dividends Payable for $646,000.
• C) A debit to Dividends Payable and a credit to Cash for $646,000.
• D) A debit to Dividends Declared and a credit to Dividends Payable for $680,000.

---

Definitions:

Enuresis

A medical condition characterized by the involuntary discharge of urine, typically diagnosed when it occurs at an age beyond the expected period of toilet training.

Cartilage

A flexible, rubber-like tissue present in various parts of the body, such as joints and airways, that provides structure and support without the rigidity of bone.

Fatty Tissue

Connective tissue in the body that stores fat, serving as an energy reserve, insulating against heat loss, and providing cushioning for organs.

Bones

The rigid organs that constitute part of the vertebrate skeleton, providing structure and protection to the body.