A Company Declared a $0

question 183

Multiple Choice

A company declared a $0.80 per share cash dividend.The company has 100,000 shares authorized,45,000 shares issued,and 42,000 shares of common stock outstanding.What is the journal entry to record the dividend declaration?

• A) Debit Dividends and credit Dividends Payable for $36,000
• B) Debit Dividends and credit Dividends Payable for $33,600
• C) Debit Dividends Payable and credit Cash for $36,000
• D) Debit Dividends Payable and credit Cash for $80,000

---

Definitions:

Forecast

A prediction or estimate of a future event or trend based on historical data and analysis.

Newsvendor Model

A mathematical model used to determine optimal inventory levels for products that have uncertain demand and a limited selling period.

Purchase Quantity

The total number of units of a product that a customer buys at one time.

Average Profit

The total profit divided by the number of entities, indicating the average amount of profit per entity.