Malcolm Corporation Declared a Dividend of $5 Per Share on 1,000

question 18

Multiple Choice

Malcolm Corporation declared a dividend of $5 per share on 1,000 shares.The entry to record the transaction would be to:

• A)debit Dividends Expense $5,000; credit Cash $5,000.
• B)credit Cash $5,000,debit Dividends Expense $5000.
• C)debit Dividends Payable $5,000; credit Retained Earnings $5,000.
• D)debit Retained Earnings $5,000; credit Dividends Payable $5,000.

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Definitions:

Oral Contract

An agreement made through spoken communication between parties, rather than in writing, yet is legally binding.

Project

A project is a planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Eighteen Months

A time period equal to one and a half years.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing and signed by the involved parties to be enforceable.