On 1 November 2016,Oster Ltd Declared a Dividend of $3

question 49

Multiple Choice

On 1 November 2016,Oster Ltd declared a dividend of $3.25 per share.Oster Ltd has 28,000 shares of ordinary shares outstanding and no preference shares.Which of the following is the journal entry needed to record the declaration of dividends?

• A)debit Retained earnings $91,000 and credit Cash $91,000
• B)debit Cash $91,000 and credit Dividends payable,ordinary $91,000
• C)debit Dividends payable,ordinary $91,000 and credit Retained earnings $91,000
• D)debit Retained earnings $91,000 and credit Dividends payable,ordinary $91,000

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Definitions:

Machine Breakdowns

Unplanned events where machinery or equipment fails to operate, potentially causing disruptions in production and incurred costs for repairs and maintenance.

Materials Spoilage

Products or components that are damaged, expired, or otherwise unable to be used in production, often leading to waste and financial loss.

Budgeted Cost Systems

Accounting systems that use budgets to project the costs of operating a business, typically used for planning and control purposes.

Standards

Established requirements, specifications, guidelines, or characteristics to be used consistently to ensure that materials, products, processes, and services are fit for their purpose.