On November 1,2017,Oster,Inc

question 83

Multiple Choice

On November 1,2017,Oster,Inc.declared a dividend of $4.50 per share.Oster,Inc.has 23,000 shares of common stock outstanding and no preferred stock.Which of the following is the journal entry needed to record the declaration of the dividend?

• A)Debit Dividends Payable-Common $103,500,and credit Retained Earnings $103,500.
• B)Debit Cash Dividends $103,500,and credit Cash $103,500.
• C)Debit Cash Dividends $103,500,and credit Dividends Payable-Common $103,500.
• D)Debit Cash $103,500,and credit Dividends Payable-Common $103,500.

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Definitions:

Secondary Market

A marketplace where investors buy and sell securities they already own, which were previously issued in the primary market.

Common Shares

Common Shares represent ownership interests in a corporation, granting holders voting rights and a share in the company's profits through dividends and capital appreciation.

Broker

A person or entity that acts as an intermediary in financial transactions, connecting buyers and sellers for a commission.

Primary Market Transaction

Financial transactions that occur when securities are issued for the first time, such as an initial public offering (IPO).