The groom company has 50,000 shares of $10 par value common stock outstanding when it declares a dividend of $1 per share. what would be the journal entry for the declaration of the cash dividends? select one:
a. debit: dividends payable - common stock 50,000 credit: cash 50,000
b. debit: cash dividends 50,000 credit: dividends payable - common stock 50,000
c. debit: cash 50,000 credit: cash dividends 50,000
d. debit: cash dividends 50,000 credit: cash 50,000

B) Debit: Cash Dividends 50,000 Credit: Dividends Payable - Common Stock 50,000

Explanation:

At the time of declaration of dividends the proper journal entry should be:

You can use the Cash Dividends account, which is a temporary account, although it's not the best option. This account is used only when companies have not been making a profit before (retained earnings = 0), or for new companies.  

Since no payment is done, the cash account is not affected (eliminating options A, C and D).

Dividends Payable is a liability account and since it increases, it should be debited.

Cash Dividends is a temporary equity account that is debited once the company declares the dividend distribution.

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muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

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