Risingstar Corporation currently has 129,000 shares outstanding of $3 par value common stock. The stock was originally issued for $14 per share. On March 15, the board of directors declares a 13% stock dividend when the stock is selling for $22 per share. Which of the following is the correct journal entry to record this transaction? (Do not round intermediate calculations.)
A) debit Common Stock Dividend Distributable $50,310, debit Paid-In Capital in Excess of Par—Common for $318,630 and credit Retained Earnings $368,940
B) debit Stock Dividends $368,940 and credit Common Stock Dividend Distributable $368,940
C) debit Stock Dividends $368,940, credit Common Stock Dividend Distributable $50,310 and credit Paid-In Capital in Excess of Par—Common $318,630
D) debit Paid-In Capital in Excess of Par—Common $368,940 and credit Retained Earnings $368,940
C) debit Stock Dividends $368,940, credit Common Stock Dividend Distributable $50,310 and credit Paid-In Capital in Excess of Par—Common $318,630
Explanation: Stock Dividends = (129,000 × $22 × 13%) = 368,940
Common Stock Dividend Distributable = (129,000 × $3 × 13%) = 50,310
Paid-In Capital in Excess of Par—Common = (129,000 × ($22 - $3) × 13%) = 318,630
You might also like to view...
Malaysia, Indonesia, Singapore, Thailand, and Cambodia are all members of ________
A) the Andean Group B) ASEAN C) MERCOSUR D) NAFTA E) APEC
List and discuss the most common social media metrics that public relations practitioners use to measure return on investment (ROI)
What will be an ideal response?
The most visible and memorable parts of a document are generally found ________________
a. in the table of contents b. in the appendices c. in the conclusion d. at the beginning of the document
Which of the following is true of presentation visuals?
A) ?They decrease retention of information. B) ?They increase the time required to present a concept. C) ?They decrease the emphasis on important points. D) ?They increase occurrence of group consensus.