On February 16,Hawthorne Co

question 122

Multiple Choice

On February 16,Hawthorne Co.declares a $0.68 dividend to be paid on April 5.Hawthorne has 1,900,000 shares of common stock issued and outstanding.The entry recorded by the company on February 16 includes a debit to:

• A)Dividends Payable and a credit to Cash for $1,360,000.
• B)Dividends and a credit to Dividends Payable for $1,292,000.
• C)Dividends Payable and a credit to Cash for $1,292,000.
• D)Dividends and a credit to Dividends Payable for $1,360,000.

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Definitions:

Interest-Rate Cost-Of-Funds

The cost associated with borrowing funds, determined by the interest rate being charged on the borrowed money.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied of a good changes infinitely in response to any change in price.

R&D Expenditures

Funds allocated by a government, corporation, or other entity towards research and development activities aimed at innovating and improving products or processes.