On November 1, 2014, Oster Company Declared a Dividend of $3.00

question 161

Multiple Choice

On November 1, 2014, Oster Company declared a dividend of $3.00 per share. Oster Company has 20,000 shares of common stock outstanding and no preferred stock. Which of the following is the journal entry needed to record the declaration of dividends?

• A) Debit Dividends payable $60,000 and credit Retained earnings $60,000.
• B) Debit Retained earnings $60,000 and credit Cash $60,000.
• C) Debit Retained earnings $60,000 and credit Dividends payable $60,000.
• D) Debit Cash $60,000 and credit Dividends payable $60,000.

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Definitions:

Positive Emphasis

The act of focusing on the positive aspects of a situation or piece of information, often to encourage or motivate.

Process Audit

An examination and evaluation of an organization's various processes to assess their efficiency and effectiveness.

Inaccurate Figures

Data or numerical information that is incorrect or does not accurately reflect the true situation or measurement.

Bias-Free Language

Communication that avoids words or phrases that discriminate against specific groups or imply partiality.