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

question 28

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. The date of record is November 15, and the payment date is November 30, 2014.
- Which of the following is the journal entry needed on November 30?

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

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Definitions:

Life Insurance

A contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person.

Insurance Application

A formal request or proposal to an insurance company for coverage, detailing personal or organizational information relevant for underwriting.

Risk Management

The process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability or impact of unfortunate events.

Insurance Company

An entity that provides financial compensation to individuals or entities against losses from specified risks in exchange for premiums.