Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend payment is:

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Business

Libby Simmons

31 December, 20:44

Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend payment is:

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Jingles · Answer 1

Answer and Explanation:

The journal entry to record the dividend payment is shown below:

Common Dividends payable $4,000 (8,000 shares outstanding * $ 0.50 cash dividend)

To Cash for $4,000

(being the dividend payment is recordeD)

For recording this we debited the common dividend payable as it decreased the liabilities and credited the cash as it also decreased the assets