Solution-Which account and amount should we debit

Which account and amount should we debit

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Reference no: EM132743991

Question - Our company earned a net income of $450,000 for 2017. On January 3, 2018, we declared a $1.20 per share dividend on our 100,000 outstanding shares of common stock to shareholders of record as of January 15, 2018. We will pay the dividend on February 3, 2018. Which account and amount should we debit when we journalize the entry needed on the date of declaration (January 3)?

a. Cash, $120,000

b. Dividends payable, $120,000

c. No entry is required on the date of declaration

d. Retained earnings, $120,000

Reference no: EM132743991

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Which account and amount should we debit

Reference no: EM132743991

Reference no: EM132743991

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