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 debit to Dividends Payable for $30,000.
B) a debit to Retained Earnings for $48,750.
C) a credit to Common Stock for $18,750.
D) both a credit to Common Stock for $18,750 and debit to Retained Earnings for $48,750.
Correct Answer:
Verified
Q66: The reissuance of treasury stock at a
Q67: Before a company can pay dividends to
Q68: The Floristan Company has 50,000 shares of
Q69: The entry to record the issuance of
Q70: When the board of directors declares a
Q72: Stock dividends:
A)increase the total liabilities of the
Q73: The entry to record the sale of
Q74: The entry to record the distribution of
Q75: Hawkeye Corporation issues 100 shares of no-
Q76: When 100 shares of $10 par value
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents