Niren, Inc.'s charter authorizes 1,000,000 shares of stock at a par value of $1 per share. Niren sells 100 shares of stock at Its initial offering for $1 per share. The journal entry to record this transaction will include to Common Stock, $1 par for $ (debit/credit) The board of directors of Anchor, Inc. authorizes a $0.50 cash dividend to its 100,000 shares of common stock issued and outstanding. On the date of payment, a journal entry will include which of the following accounts? (Check all that apply) Check all that apply.

Credit to Common Dividend Payable

Debit to Common Dividend Payable

Debit to Retained Earnings

Credit to Retained Earnings

Debit to Cash

Credit to Cash

Question

Business

Joslyn Stark

19 April, 19:49

Niren, Inc.'s charter authorizes 1,000,000 shares of stock at a par value of $1 per share. Niren sells 100 shares of stock at Its initial offering for $1 per share. The journal entry to record this transaction will include to Common Stock, $1 par for $ (debit/credit) The board of directors of Anchor, Inc. authorizes a $0.50 cash dividend to its 100,000 shares of common stock issued and outstanding. On the date of payment, a journal entry will include which of the following accounts? (Check all that apply) Check all that apply.

Credit to Common Dividend Payable

Debit to Common Dividend Payable

Debit to Retained Earnings

Credit to Retained Earnings

Debit to Cash

Credit to Cash

+1

Answers (1)

Know the Answer?

Jacob Lloyd · Answer 1

Share Sales : DR Cash Account $100 and CR Common Stock $100

Authorized Cash Dividend : R Retained Earning $50,000 and CR Common Stock Dividend payable Account $50,000

Explanation:

Share Sales:

DR Cash Account $100 and CR Common Stock $100

Authorized Cash Dividend:

DR Retained Earning $50,000 (0.5 X 100,000) and CR Common Stock Dividend payable Account $50,000

When dividend is eventually paid, CR Cash Account and DR Dividend Payable Account.