Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000 shares. At the time of the stock dividend, the market value per share was $12. The entry to record this dividend is:
A. Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $36,000.
B. Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $30,000; credit Paid-In Capital in Excess of Par Value, Common Stock $6,000.
C. Debit Retained Earnings $30,000; credit Common Stock Dividend Distributable $30,000.
D. Debit Common Stock Dividend Distributable $36,000; credit Retained Earnings $36,000.
E. No entry is needed.
Answer: C
You might also like to view...
For the following situation, state whether it represents a strength or weakness in internal control and give the reason for your answer. Baker Auto Supply purchases merchandise inventory from A & B Company. The accountant places the order, verifies receipt of the merchandise, and records the transaction in the general journal.
What will be an ideal response?
Discuss why it is important that your audience sees you have credible on your specific topic.
What will be an ideal response?
Which of the following assets does not depreciate?
a. Buildings b. Office equipment c. Land d. Land improvements e. Fences and parking lots
Budgets are normally more effective when all levels of management are involved in the budgeting process.
Answer the following statement true (T) or false (F)