Choco-Delite Cookies Company (Choco) declared a $1,600,000 cash dividend on December 15, Year 2, payable to all
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Choco-Delite Cookies Company (Choco) declared a $1,600,000 cash dividend on December 15, Year 2, payable to all stockholders on record the following month. On December 31, Year 2, the company completed a 2-for-1 stock split (note: prior to the split there were 2 million common shares outstanding with a par value of $2). If Choco had net income of $3,000,000 for year 2, what is the net journal entry impact on the company's retained earnings account for December, assuming that Choco posts journal entries on a monthly basis and that temporary accounts are closed at year-end? O A. 3,000,000 credit (net) 1,600,000 debit (net) OB. ( m HEE
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
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