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The B Spaniel Company Has Common Stock with a $5 Par

Question 56

Multiple Choice

The B. Spaniel Company has Common Stock with a $5 par value. 100,000 shares were authorized and 25,000 shares were issued. Common stock is currently selling at $13 per share. The entry to record the distribution of a 15% common stock dividend includes a:


A) credit to Paid- in Capital in Excess of Par Value-Common for $30,000.
B) debit to Retained Earnings for $37,500.
C) debit to Paid- in Capital in Excess of Par Value-Common for $30,000.
D) credit to Common Stock for $37,400.

Correct Answer:

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