Question

On February 16, Hawthorne Co. declares a $0.39 dividend to be paid on April 5. Hawthorne...

On February 16, Hawthorne Co. declares a $0.39 dividend to be paid on April 5. Hawthorne has 2,050,000 shares of common stock issued and outstanding. The entry recorded by the company on February 16 includes a debit to:

Multiple Choice

  • Dividends Payable and a credit to Cash for $799,500.

  • Dividends and a credit to Dividends Payable for $799,500.

  • Dividends Payable and a credit to Cash for $758,550.

  • Dividends and a credit to Dividends Payable for $758,550

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer) Dividends and a credit to Dividends Payable for $799,500.

Explanation:

Dividends declared = 0.39per share

Number of shares outstanding = 2050000 shares

Dividends payable = 2050000 × 0.39 = 799,500

On February 16, dividend was declared and not paid. So, journal entry will includes a debit to 'Dividends' and credit to 'Dividends payable'.

When it is actually paid in April, Journal entry will include a debit to 'Dividends payable' and credit to 'Cash'.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has...
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 43,000 shares authorized, 22,800 shares issued, and 17,200 shares of common stock outstanding. The journal entry to record the dividend declaration is: Multiple Choice: Debit Retained Earnings $21,500; credit Common Dividends Payable $21,500. Debit Retained Earnings $11,400; credit Common Dividends Payable $11,400. Debit Common Dividends Payable $11,400; credit Cash $11,400. Debit Common Dividends Payable $8,600; credit Cash $8,600. Debit Retained Earnings $8,600; credit Common...
Desert Apparel has 5,000 shares of common stock outstanding. On April 1, the company declares a...
Desert Apparel has 5,000 shares of common stock outstanding. On April 1, the company declares a $3 per share dividend to stockholders of record on April 15. The dividend is paid on April 30. Record all necessary entries on the appropriate dates for cash dividends. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has...
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 21,000 shares authorized, 9,600 shares issued, and 8,400 shares of common stock outstanding. The journal entry to record the dividend declaration is:   a. Debit Retained Earnings $4,200; credit Common Dividends Payable $4,200. b. Debit Common Dividends Payable $4,200; credit Cash $4,200. c. Debit Retained Earnings $4,800; credit Common Dividends Payable $4,800. d. Debit Common Dividends Payable $4,800; credit Cash $4,800. e. Debit Retained Earnings...
On November 13, the Board of Directors of Master of Coin Rare Coin Collectors, Inc. declares...
On November 13, the Board of Directors of Master of Coin Rare Coin Collectors, Inc. declares a cash dividend that will be paid on November 27. Which of the following is the correct journal entry that the company should record on November 13? Debit Cash Dividends and credit Dividends Payable. Debit Dividends Payable and credit Cash. Debit Dividends Payable and credit Cash Dividends. No journal entry is recorded on the declaration date.
Multiple Choice Question 133 The board of directors of Ayayai Corp. declared a cash dividend of...
Multiple Choice Question 133 The board of directors of Ayayai Corp. declared a cash dividend of $2 per share on 34000 shares of common stock on July 15, 2017. The dividend is to be paid on August 15, 2017, to stockholders of record on July 31, 2017. The effects of the journal entry to record the payment of the dividend on August 15, 2017, are to increase stockholders’ equity and increase liabilities. decrease liabilities and decrease assets. decrease stockholders’ equity...
Cash Dividends Rock Corporation has the following shares outstanding: 8,000 shares of $40 par value, ten...
Cash Dividends Rock Corporation has the following shares outstanding: 8,000 shares of $40 par value, ten percent preferred stock and 50,000 shares of $2 par value common stock. The company has $428,000 of retained earnings. At year-end, the company declares its regular $4 per share cash dividend on the preferred stock and a $3.20 per share cash dividend on the common stock. Two weeks later, the company pays the dividends. a. Prepare the journal entry for the declaration of the...
On January 1, 2020, Samsung Corporation has 400,000 shares of $3 par value common stock outstanding....
On January 1, 2020, Samsung Corporation has 400,000 shares of $3 par value common stock outstanding. On the same date the corporation’s board of directors declares a 12% stock dividend to be issue on March 2, 2020. On the declaration date, the corporation’s common stock fair market value is $4. On declaration date, the corporation will record: * Debit Stock Dividend $144,000 Debit Stock Dividend $192,000 Credit Stock Dividend $144,000 Credit Stock Dividend $192,000 A Company has 30,000 shares of...
MC Qu. 143 On February 15, Jewel Company... On February 15, Jewel Company buys 6,100 shares...
MC Qu. 143 On February 15, Jewel Company... On February 15, Jewel Company buys 6,100 shares of Marcelo Corp. common stock at $28.72 per share plus a brokerage fee of $495. The stock is classified as long-term available-for-sale securities. This is the company’s first and only investment in available-for-sale securities. On March 15, Marcelo declares a dividend of $1.34 per share payable to stockholders of record on April 15. Jewel received the dividend on April 15 and ultimately sells half...
On January 1, BearBack Corporation had 300,000 common shares issued. On April 10, the company declared...
On January 1, BearBack Corporation had 300,000 common shares issued. On April 10, the company declared a 10% stock dividend to be distributed on April 30. The market value of the shares was $7 on April 10 and $10 on April 30. The entry to record the transaction of April 10 would include a a) credit to Stock Dividends Distributable for $210,000. b) debit to Stock Dividends Distributable for $300,000. c) credit to Cash for $210,000. d) credit to Retained...
Divine Apparel has 3,000 shares of common stock outstanding. On October 1, the company declares a...
Divine Apparel has 3,000 shares of common stock outstanding. On October 1, the company declares a $0.50 per share dividend to stockholders of record on October 15. The dividend is paid on October 31. a) Record the clarion of cash dividends. b )Record the entry on date of record. c) Record the payment of cash dividends.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT