CGI Corporation had 10,000 shares of $2 par common stock outstanding; the shares had been issued at $5 per share.At the end of March 2011, CGI declared a $3 cash dividend per share when the market price of the stock was $8 per share.After processing the dividend transaction, the balance in CGI's common stock account will be:

Question

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The balance in CGI's common stock account remains unchanged by the declaration and payment of a cash dividend. The account reflects the par value of the shares issued, which is 10,000 shares at $2 par, totaling $20,000. Cash dividends affect retained earnings and the cash account, not the common stock account.

CGI Corporation Had 10,000 Shares of $2 Par Common Stock