Use this information to answer the following question. Pinnacle Corporation has 90,000 shares of $10 par value common stock outstanding. The following transactions occurred during the year: Mar. 17 Declared a 10 percent stock dividend to stockholders of record on March 20. Market value of the stock was $22 on March 17. Mar. 30 Distributed the stock dividend. The entry to record the transaction of
March 30 is:
A) Common Stock Distributable 90,000 Common Stock 90,000
B) Common Stock Distributable 90,000 Retained Earnings 108,000Common Stock 198,000
C) Common Stock Distributable 198,000 Common Stock 90,000Additional Paid-in Capital 108,000
D) Common Stock Distributable 90,000 Cash 90,000
A
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