Assume a corporation has 3,000 shares of $4 par common stock outstanding. The corporation declares a 28% 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 $5,040, credit Stock Dividends Distributable $5,040.
b. Debit Stock Dividends $3,360, credit Stock Dividends Distributable $3,360.
c. Debit Stock Dividends Distributable $3,360, debit Paid-in Capital in Excess of Par-Common Stock $1,680 and credit Stock Dividends $5,040.
d. Debit Stock Dividends Distributable $3,360, credit Stock Dividends $3,360.
e. Debit Stock Dividends $5,040, credit Stock Dividends Distributable $3,360 and credit Paid-in Capital in Excess of Par-Common Stock $1,680.
b
You might also like to view...
Nate works as a sales representative. His employment contract specifies that he cannot work for a competitor for a period of two years from employment. This is an example of
a. vagueness. b. extortion. c. ambiguity. d. duress.
Make your life easier at tax time by keeping ________.
A. complete financial records B. operating ratios C. a good working capital figure D. high net income
Which of the following statements is true of codes of conduct?
A. They work best with monitoring. B. They help in justifying misconduct. C. They should not be forcefully enforced. D. Their importance should not be overcommunicated.
The price of a convertible bond is often 1 . greater than its value as stock 2 . less than its value as stock 3 . greater than its value as debt 4 . less than its value as debt
a. 1 and 3 b. 1 and 4 c. 2 and 3 d. 2 and 4