Sayali Company has 200,000 shares of $60 par value common stock outstanding. On April 15, 2019 the company declared a 40% stock dividend. The current market value of the stock was $90 per common share.
The journal entry on April 15 will include:
A) A credit to Stock Dividends Distributable for $7,200,000
B) A debit to Retained Earnings for $7,200,000
C) A credit to Stock Dividend Distributable for $4,800,000
D) A credit to Paid-in Capital in excess of par value, Common Stock for $2,400,000
Correct Answer:
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