Which of the following is the journal entry to record the declaration of a stock dividend?
A) Debit Common Stock Dividend Distributable (number of shares × par value common stock) ; credit Common Stock (same)
B) Debit Common Stock Dividend Distributable (number of shares × market value common stock) ; credit Common Stock (same)
C) Debit Retained Earnings (market value × number of shares) ; credit Common Stock Dividend Distributable (number of shares × par value) ; credit Paid-In Capital in Excess of Par Stock Dividend (market value - par value) × number of shares
D) Debit Common Stock (number of shares × par value) ; credit Cash
Correct Answer:
Verified
Q20: When the corporation has both preferred and
Q21: Declaration of a cash dividend causes:
A)an increase
Q22: The journal entry to record the issuance
Q23: What are the annual dividends on preferred
Q24: The entry to record the declaration of
Q26: Malcolm Corporation declared a dividend of $5
Q27: ABC Corporation offered a four-for-one stock split.The
Q28: The entry to record the distribution of
Q29: Cody's Western Wear has 2,000 shares of
Q30: The date of record for cash dividends
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