On June 1, 2014, the Board of Directors Declared a $100,000

question 147

Multiple Choice

On June 1, 2014, the board of directors declared a $100,000 cash dividend to be distributed to common stockholders of record on June 15, 2014. The dividend will be paid on July 1, 2014. The required journal entry on June 1 includes a

• A)$100,000 debit to retained earnings.
• B)$100,000 debit to dividends payable.
• C)$100,000 credit to cash.
• D)$100,000 credit to common stock.

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