Mapleleaf Industries Declared a $0

question 156

Multiple Choice

Mapleleaf Industries declared a $0.80 per share cash dividend.The company has 200,000 shares authorized,90,000 shares issued,and 84,000 shares of common stock outstanding.What is the journal entry to record the dividend declaration?

• A)Debit Dividends and credit Dividends Payable for $72,000.
• B)Debit Dividends and credit Dividends Payable for $67,200.
• C)Debit Dividends Payable and credit Cash for $72,000.
• D)Debit Dividends Payable and credit Cash for $160,000.

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Privity of Contract

A legal concept stating that only the parties to a contract have the right to sue each other to enforce the terms of that contract.

Supreme Court Decision

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Trust

A provision in equity whereby one person transfers property to a second person obligated to use it to the benefit of a third person.

Involuntary Assignment

Assignment of rights that takes place involuntarily, as in the cases of death and bankruptcy.