On July 1, the board of directors of Dive Inn, Inc., declared a cash dividend of $0.10 per share on its $1 par value, 1,000,000 common shares outstanding. The date of record is the close of business on July 12, payable August 31. The entry to record the payment of dividends on August 31 includes a ______
a. debit Dividends $100,000
b. debit Dividends Payable $100,000
c. debit Dividends $10,000
d. credit Dividends $100,000
e. credit Cash $100,000
f. credit Cash $10,000
Ans:
b. debit Dividends Payable $100,000
e. credit Cash $100,000
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