Answer:
Shareholders for Dividends $100,100 (debit)
Cash $100,100 (credit)
Explanation:
Dividends are declared on the number of shares outstanding at the declaration date. Thus 182,000 shares of common stock outstanding when Fetzer Company declared a $0.55 per share cash dividend.
Declaration of dividend creates a liability for the company to its shareholders and this will be settled when the payment is made. Journal for the payment is shown above.
