Fetzer Company declared a $0.45 per share cash dividend. The company has 440,000 shares authorized, 418,000 shares issued, and 17,600 shares in treasury stock. The journal entry to record the payment of the dividend is:

Given that,

Shares authorized = 440,000

Shares issued = 418,000

Shares in treasury stock = 17,600

Shares outstanding:

= Shares issued - Shares in treasury stock

= 418,000 - 17,600

= 400,600

Dividend issued:

= Dividend per share * Shares outstanding

= $0.45 per share * 400,600

= $180,270

Hence, the journal entry is as follows:

Common Dividends Payable A/c Dr. $180,180

To cash A/c $180,180

(To record the payment of the dividend)