Kizspy | Question: 47
(Choose 1 answer)
A company's board of directors votes to declare a cash dividend of $0.50 per share on its 24,000 common
shares outstanding. The journal entry to record the payment of the cash dividend is:
A. Debit Dividend Expense $12,000; credit Cash $12,000.
B. Debit Dividend Expense $12,000; credit Common Dividend Payable $12,000.
C. Debit Common Dividend Payable $12,000; credit Cash $12,000.
D. Debit Retained Earnings $12,000; credit Common Dividend Payable $12,000.
E. Debit Common Dividend Payable $12,000; credit Retained Earnings $12,000.
