Assume a corporation has 3,000 shares of $4 par common stock outstanding. The corporation declares an 8% 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 $1,440, credit Stock Dividends Distributable $960 and credit Paid-in Capital in Excess of Par-Common Stock $480.
b. Debit Stock Dividends $960, credit Stock Dividends Distributable $960
c. Debit Stock Dividends Distributable $960, debit Paid-in Capital in Excess of Par-Common Stock $480 and credit Stock Dividends $1,440.
d. Debit Stock Dividends Distributable $960, credit Stock Dividends $960.
e. Debit Stock Dividends $1,440, credit Stock Dividends Distributable $480 and credit Paid-in Capital in Excess of Par-Common Stock $960.
a
You might also like to view...
When you're writing a routine request for information or action in a complex situation,
A) provide vague reasons to support your request. B) limit the justification for your request. C) point out the benefits of complying with your request. D) dwell on the negative consequences of choosing not to comply. E) identify who will be affected by a lack of action on the reader's part.
Helping sustain the physical environment is considered to be part of having good ethical skills
Indicate whether the statement is true or false.