The shareholders' equity section of Manning Company as of December 31, 2010 follows:
The company declares and distributes a 3 percent stock dividend on the outstanding shares. The market price of the stock is $85 per share. The journal entry to record the stock dividend would include:
a. a debit to Additional Paid-In Capital, Common Stock for $25,500.
b. a credit to Common Stock for $1,800.
c. a credit to Stock Dividend for $25,500.
d. a debit to Additional Paid-In Capital, Common Stock for $23,700.

Question

The shareholders' equity section of Manning Company as of December 31, 2010 follows:
  The company declares and distributes a 3 percent stock dividend on the outstanding shares. The market price of the stock is $85 per share. The journal entry to record the stock dividend would include: 
a. a debit to Additional Paid-In Capital, Common Stock for $25,500.
b. a credit to Common Stock for $1,800.
c. a credit to Stock Dividend for $25,500.
d. a debit to Additional Paid-In Capital, Common Stock for $23,700.

Quizplus · Accepted Answer

The Answer of The shareholders' equity section of Manning Company as of December 31, 2010 follows:
  The company declares and distributes a 3 percent stock dividend on the outstanding shares. The market price of the stock is $85 per share. The journal entry to record the stock dividend would include: 
a. a debit to Additional Paid-In Capital, Common Stock for $25,500.
b. a credit to Common Stock for $1,800.
c. a credit to Stock Dividend for $25,500.
d. a debit to Additional Paid-In Capital, Common Stock for $23,700.

The Shareholders' Equity Section of Manning Company as of December