A corporation should account for the declaration of a 10 percent stock dividend by
A) transferring from retained earnings to contributed capital an amount equal to the legal capital represented by the dividend shares.
B) transferring from retained earnings to contributed capital an amount equal to the market value of the dividend shares.
C) transferring from retained earnings to contributed capital whatever amount the board of directors deems appropriate.
D) making only a memorandum entry in the general journal.
B
You might also like to view...
Answer the following statements true (T) or false (F)
1. A company's investments in stock or bonds cannot include the acquisition of an entire company. 2. Just as individuals invest in a variety of companies' stocks and bonds, the same is true for businesses. 3. The owner of a bond or stock of a corporation is referred to as the investor. 4. A preferred stock is an example of a debt security.
Monty Boyd, an account manager, travels frequently on West Coast Airlines. Monty earns points for every mile he flies, and he will soon have enough points to receive a free airline ticket
West Coast Airlines is attempting to build a strong customer relationship with Monty through a ________. A) trade promotion B) promotional product C) rebate offer D) point-of-purchase promotion E) frequency marketing program
A ________ occurs when an agent makes an untrue statement that he or she knows is not true
A) partially disclosed agency B) misrepresentation C) respondeat superior D) dual-purpose mission
Assuming no additions, replacements, or extraordinary repairs, the book value of a long-lived asset declines over time.
Answer the following statement true (T) or false (F)