Answer:
debit to dividends payable for $3,125
Explanation:
Based on the information given the journal entry to pay a previously declared dividend of the amount of $.25 per share on 12,500 outstanding shares of common stock requires a:
Debit to dividends payable for $3,125
Calculated as:
Dividends payable =Dividend of the amount of $.25 per share *12,500 outstanding shares of common stock
Dividends payable=$3,125
