uestion 15 15) On November 1, 2015, Oster Company declared a dividend of $3.00 p

Question

uestion 15 15) On November 1, 2015, Oster Company declared a dividend of $3.00 per share. Oster Comp no preferred stock. The date of record is November 15, and the payment date is November 30, November 30? A) Debit Retained Earnings s60,000 and credit Dividends Payable-Common $60.000 B) Debit Dividends Payable-Common $60,000 and credit Cash $60.000. C) Debit Cash $60,000 and credit Dividends Payable-Common $60,000 D) Debit Retained Earnings $60,000 and credit Cash $60,000 Question 16 16) Pearland Company has 5.000 shares of preferred stock outstanding The preferred stock has a $90 noncumulative If Pearland has sufficient funds to pay dividends, what is the total amount of dividends t A) $10 800

Explanation / Answer

Answer is B

As dividend payable is already recorded on nov 1, 2015 be debting retained earnings and crediting dividend payable.

therefore now on payment date dividend payable is debited and cash is credited.

All other options are incorrect.

Account and Tittles Debit Credit Dividends Payable 60000     Cash 60000

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