On June 1, a Board of Directors Declared a $3

question 124

Multiple Choice

On June 1, a board of directors declared a $3 per share cash dividend, payable on June 30 to all common stockholders of record on June 15. The company has 10,000 shares of common stock authorized, 1,000 shares issued, and 200 shares in the treasury. The entry to record the dividend declaration increases

• A)a liability account by $2,400.
• B)an asset account by $3,000.
• C)an expense account by $2,400.
• D)a stockholders' equity account by $3,000.

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Definitions:

High Courts

The senior courts in a country that typically handle appellate cases and significant legal matters, often with jurisdiction over other lower courts.

Poor Law

Legislation aimed at providing aid and support to the impoverished segments of society, notably the English Poor Laws which established a system of poor relief.

Assistance

The act of helping or aiding someone or something, often referring to support provided by individuals, organizations, or governments.

Community

A group of people living in the same place or having a particular characteristic in common, often sharing a sense of identity and belonging.