Assume a corporation has 3,000 shares of $4 par common stock outstanding. The corporation declares an 8% stock dividend. At the time of declaration, the market value of their stock was $6 . What is the appropriate journal entry?
a. Debit Stock Dividends $1,440, credit Stock Dividends Distributable $960 and credit Paid-in Capital in Excess of Par-Common Stock $480.
b. Debit Stock Dividends $960, credit Stock Dividends Distributable $960
c. Debit Stock Dividends Distributable $960, debit Paid-in Capital in Excess of Par-Common Stock $480 and credit Stock Dividends $1,440.
d. Debit Stock Dividends Distributable $960, credit Stock Dividends $960.
e. Debit Stock Dividends $1,440, credit Stock Dividends Distributable $480 and credit Paid-in Capital in Excess of Par-Common Stock $960.
a
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