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g Fetzer Company declared a $0.55 per share cash dividend. The company has 200,000 shares authorized, 190,000 shares issued, and 182,000 shares of common stock outstanding. The journal entry to record the payment of the dividend is: Group of answer choices

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Zviko

Answer:

Shareholders for Dividends $100,100 (debit)

Cash  $100,100 (credit)

Explanation:

Dividends are declared on the number of shares outstanding at the declaration date. Thus 182,000 shares of common stock outstanding when Fetzer Company declared a $0.55 per share cash dividend.

Declaration of dividend creates a liability for the company to its shareholders and this will be settled when the payment is made. Journal for the payment is shown above.

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