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  3. on november 15, 2021, hutter corporation declared

On November 15, 2021, Hutter corporation declared a $0.50 per share cash dividend on its...

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Accounting

On November 15, 2021, Hutter corporation declared a $0.50 per share cash dividend on its common shares. THe company has 43,000 shares authorized, 22,800 shares issued adn 17,200 shares of common stock outstanding on that date. the date of recorded was set to be December 31,2021 and the date of payment (distribution) was set to be February 15,2022. The effect of the declaration on November 15,2021 is:

A. a decrease in Common dividends payable $8,600 and a decrease in Cash of $8,600

B. A decrease in retained earnings $8,600 and a increase in common dividends payable $8,600

C. A decrease in retained earnings $11,400 and a decrease in cash $11,400.

D. No effect on the companys accounting equation because dividends would be paid until February 15,2022.

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