Reference no: EM131179979
Fetzer Company declared a $0.25 per share cash dividend. The company has 360,000 shares authorized, 342,000 shares issued, and 14,400 shares in treasury stock. The journal entry to record the payment of the dividend is:
Debit Retained Earnings $85,500; credit Common Dividends Payable $85,500.
Debit Common Dividends Payable $85,500; credit Cash $85,500.
Debit Retained Earnings $81,900; credit Common Dividends Payable $81,900.
Debit Retained Earnings $90,000; credit Common Dividends Payable $90,000.
Debit Common Dividends Payable $81,900; credit Cash $81,900.
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