Question

The board of directors of Capstone Inc. declared a $0.70 per share cash dividend on its $1 par common stock. On the date of declaration, there were 50,000 shares authorized, 22,000 shares issued, and 3,800 shares held as treasury stock. What is the entry for the dividend declaration?

Answer 1

Dividends 3,800

Dividend payable is 3,800

Step-by-step explanation:

Base on the scenario been described in the question, the board of directors of Capstone Inc. declared a $0.70 per share cash dividend on its $1 par common stock, the entry for dividend declaration according to the Capstone inc. is dividends 3,800 dividend payable is 3,800