The Board of Directors of Irondale Corporation Declared a Cash $\begin{array}{lll}\text {Cash } & 142,500 \\\text { Dividends Payable } & & 142,500 \end{array}$

question 35

Multiple Choice

The board of directors of Irondale Corporation declared a cash dividend of $2.50 per share on 57,000 shares of common stock on June 14,2010.The dividend is to be paid on July 15,2010,to shareholders of record on July 1,2010.The proper entry to be recorded on July 15,2010,will be:

• A)
• \(\begin{array}{lll}
• \text {Cash } & 142,500 \\
• \text { Dividends Payable } & & 142,500
• \end{array}\)
• B)
• \(\begin{array}{lll}
• \text { Dividends Payable} & 142,500 \\
• \text { Cash } & & 142,500
• \end{array}\)
• C)
• \(\begin{array}{lll}
• \text {Cash } & 142,500 \\
• \text { Dividends } & & 142,500
• \end{array}\)
• D)
• \(\begin{array}{lll}
• \text {Dividends } & 142,500 \\
• \text { Cash} & & 142,500
• \end{array}\)

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Definitions:

Break-even Sales

The amount of revenue needed to cover all fixed and variable costs, resulting in neither profit nor loss.

Southern Division

A geographical or organizational subsection of a company that operates in the southern region.

Fixed Expenses

Costs that remain constant in total regardless of changes in the level of activity or volume of output.

Break-even Sales

The amount of revenue required to cover all fixed and variable costs associated with running a business, resulting in neither profit nor loss.