Odessa Corporation had 20,000 shares of $2 par value common stock outstanding on July 1. On that day, the board of directors declared a 10% stock dividend when the market value of each share was $9. The stock dividend is to be distributed on July 20 to stockholders of record on July 10. The entry to record the dividend declaration is:
A. No entry is made until the stock is issued.
B. Debit Retained Earnings $18,000; credit Common Stock Dividend Distributable $18,000.
C. Debit Retained Earnings $18,000; credit Common Stock $4,000; credit Paid-In Capital in Excess of Par Value, Common Stock $14,000.
D. Debit Retained Earnings $18,000; credit Common Stock Dividends Distributable $4,000; credit Paid-In Capital in Excess of Par Value, Common Stock $14,000.
E. Debit Retained Earnings $18,000; credit Common Stock $18,000.
Answer: D
You might also like to view...
Rotan Company purchased a van on January 1, 2018, for $810,000. Estimated life of the van was five years, and its estimated residual value was $98,000. Rotan uses the straight-line method of depreciation. At the beginning of 2020, the company revised the total estimated life of the asset from five years to six years. The estimated residual value remained the same as estimated earlier. Calculate the depreciation expense for 2020.
A) $142,400 B) $131,300 C) $106,800 D) $71,200
Southeastern Company sold merchandise for $4,450 to Northern Company on account. The cost of goods sold was $1,185. Southeastern Company uses a perpetual inventory system and special journals. The $4,450 is recorded as ________.
A) an entry in the general journal B) Accounts Receivable DR, Sales Revenue CR column of the sales journal C) Merchandise Inventory DR column of the purchases journal D) Accounts Receivable CR column of cash receipts journal
What is the mother-in-law test?
What will be an ideal response?
Which of the following is true regarding want ads and job announcements?
a. employers are legally required to post written job announcements and ads b. the wording of job announcements and ads must be neutral c. job announcements and ads must not be placed in publications that are narrowly targeted toward particular protected class groups d. all of the above e. none of the above