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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Definitions:

Contra-Revenue Account

An account that is used to record deductions from gross revenue, resulting in net revenue.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenue, expenses, and profits or losses.

Missing Account Titles

Refers to the names or titles that are not provided or omitted in financial records or statements where they are expected to be listed.

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for other expenses, indicating the fundamental profitability of a company's products or services.