7 points Save Answer which the following is the appropriate general journal entr

Question

7 points Save Answer which the following is the appropriate general journal entry to record the declaration of cash dividends? Debit retained earnings- Dividend declared Credit CASH Credit CASH Credit dividends payable O Debit dividend payable O Debit paid-in capital Debit retained earnings-Dividend declared Credit dividends Payable QUESTION 9 7 points Save Answer Issued stock represents the maximum number of shares that can be issued. number of shares that have been sold. O number of shares that are currently held by stockholders number of shares that have been repurchased by the corporation.

Explanation / Answer

8) debit retained earnings - dividend declared and credit dividends payable

( when dividend is declared no cash is involved )

9) Loss on sale of equipment is an investing activity

10)Number of shares that have been sold

11) shares outstanding = issued - repurchased

                                       = 75,000 - 5000 = 70,000 shares

12) Liabilities are increased since we provide for dividend which is yet to be paid

13) The market price of the stock dropped to approximatley $10 per share( since 3 for 1 so shares will increase three fold and price will decrease three fold 30/3 = $10, net effect nil)

14) Is tripled compared to the number of shares that were outstanding prior to the split

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