Hutter Corporation Declared a $0

question 195

Multiple Choice

Hutter Corporation declared a $0.50 per share cash dividend on its common shares.The company has 20,000 shares authorized,9,000 shares issued,and 8,000 shares of common stock outstanding.The journal entry to record the dividend declaration is:

• A)Debit Retained Earnings $4,000;credit Common Dividends Payable $4,000.
• B)Debit Common Dividends Payable $4,000;credit Cash $4,000.
• C)Debit Retained Earnings $4,500;credit Common Dividends Payable $4,500.
• D)Debit Common Dividends Payable $4,500;credit Cash $4,500.
• E)Debit Retained Earnings $10,000;credit Common Dividends Payable $10,000.

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Definitions:

Reasoning

The mental process of generating conclusions, judgments, or inferences from facts or premises.

Naïve Psychology

An everyday, common-sense psychology that people use to understand and explain their own and others' behaviors.

Mental States

The condition of one's mind or psychological being at a particular time, including thoughts, feelings, and consciousness.

Information-Processing Capacity

The maximum amount of information that an individual can perceive, analyze, and remember at any given time, which influences cognitive performance and task efficiency.