Hutter Corporation Declared a $0

question 63

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

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Definitions:

Hippocampus

A structure within the brain critical for the formation of new memories and associated with learning and emotions.

Basal Ganglia

A group of nuclei in the brain involved in controlling movement and coordination, as well as playing a role in learning, emotional response, and habit formation.

Cerebellum

A region of the brain that plays a vital role in motor control, and may also be involved in some cognitive functions like attention and language.

Temporal Lobe

A region of the brain responsible for processing auditory information and is involved in speech, memory, and emotions.