On December 1, 2017, Arthur, Inc had 40,000 shares of $10 par value common stock issued and outstanding
The next day it declared a 50% stock dividend. The market value of the stock on that date was $9 per share. Which of the following is the correct journal entry to record this transaction?
A) debit Stock Dividends $360,000 and credit Cash $360,000
B) debit Stock Dividends $360,000, credit Common Stock $400,000, and credit Paid-In Capital in Excess of Par -$40,000
C) debit Common Stock $200,000 and credit Cash $200,000
D) debit Stock Dividends $200,000 and credit Common Stock Dividend Distributable $200,000
D .D) (40,000 x 50%) x $10 = $200,000
You might also like to view...
When determining the number of kanban containers, discuss the impact of alpha, the policy variable, on the total amount of inventory in the system
If alpha is set equal to zero, is system inventory zero? What would be required to achieve a system-wide inventory of zero?
What could you do to maintain position power if you were the plant manager?
What will be an ideal response?