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Question
A corporation had 20,000 shares of $10 par value common stock outstanding on January 10. Later that day the board of directors declared a 30% stock dividend when the market value of each share was $40. The entry to record this dividend is:
A.
| Retained Earnings | 60,000 | |
| Common Stock Dividend Distributable | 60,000 |
B.
| Retained Earnings | 60,000 | |
| Cash | 60,000 |
C.
| Retained Earnings | 240,000 | |
| Common Stock Dividend Distributable | 60,000 | |
| Paid-In Capital in Excess of Par Value, Common Stock | 180,000 |
D.
| Retained Earnings | 240,000 | |
| Common Stock Dividend Distributable | 240,000 |
E. No entry is made until the stock is issued
Answer
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Related questions
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Q:
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Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
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B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.