Question

On May 16, Thorne Co. declares a $0.40 dividend to be paid on April 5. Thorne has 2,060,000 shares of common stock issued and outstanding. The entry recorded by the company on May 16 includes a debit to: Multiple Choice Dividends Payable and a credit to Cash for $824,000. Dividends and a credit to Dividends Payable for $824,000. Dividends Payable and a credit to Cash for $781,600. Dividends and a credit to Dividends Payable for $781,600

Answer 1

b. Dividends and a credit to Dividends Payable for $824,000

Step-by-step explanation:

Dividends payable = 2,060,000 shares * $0.40 per share = $824,000

Journal entry on February 16

Dividends $824,000

Dividends payable $824,000