Hutter corporation declared a $0.50 per share cash dividend on its common shares. the company has 25,000 shares authorized, 12,000 shares issued, and 10,000 shares of common stock outstanding. the journal entry to record the dividend declaration is:

25,000 shares authorized

12,000 shares issued

10,000 shares of common stock outstanding

0.50 per share cash dividend on its common stock outstanding

Declaration of dividends on its common shares.

10,000 * 0.50 = 5,000

Debit Credit

Retained Earnings 5,000

Dividends Payable 5,000