Following Is the Shareholders' Equity Section of the Balance Sheet

question 39

Multiple Choice

Following is the shareholders' equity section of the balance sheet of the Optimum Corporation: Share capital:
Common shares,100,000 shares authorized,
The common shares are currently selling for $15.50 per share.
The entry to record the declaration of a $0.75 per share cash dividend includes:

• A) debit to Dividends Payable for $48,750
• B) credit to Common shares for $48,750
• C) debit to Retained Earnings for $48,750
• D) debit to Retained Earnings for $75,000

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