On February 16,a Company Declares a 34' Dividend to Be $\bold{\text{February 16}}$

question 28

Multiple Choice

On February 16,a company declares a 34' dividend to be paid on April 5 to shareholders of record on March 9.There are 2 million shares of common shares outstanding and 100,000 shares of treasury shares.What accounting entries does the company record on $\bold{\text{February 16}}$ ?

• A)A debit to Dividends Payable and a credit to Cash,each for $646,000.
• B)A debit to Dividends Declared and a credit to Dividends Payable,each for $646,000.
• C)A debit to Dividends Payable and a credit to Cash,each for $680,000.
• D)A debit to Dividends Declared and a credit to Dividends Payable,each for $714,000.

---

Definitions:

Class Relations

The ways in which classes (or sets) relate to each other, including inclusion, exclusion, and intersection relationships.

Relative Frequency

A measure of the proportion of times an outcome occurs compared to the total number of trials or observations.

Babies

Very young offspring of humans, characterized by limited cognitive and physical abilities, requiring extensive care and nurturing.

Collection

The act of gathering items or data together, or an assemblage of objects or information.