On November 1, 2015, Oster Company Declared a Dividend of $3.00

question 21

Multiple Choice

On November 1, 2015, 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-Common $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-Common $60,000.
• D)Debit Cash $60,000 and credit Dividends Payable-Common $60,000.

---

Definitions:

Prepubertal

Pertaining to the stage before puberty, characterized by the absence of secondary sexual characteristics.

Postpubertal

Referring to the period or stage of life immediately following puberty, when secondary sexual characteristics have developed.

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a longstanding pattern of disregard for the rights of others.

Juvenile Delinquency

Illegal or antisocial behaviors carried out by individuals under the age of majority.