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Fallingstar,Inc

Question 168

Multiple Choice

Fallingstar,Inc.has 110,000 shares of common stock issued and outstanding,with a par value of $0.03 per share.It declared a 17% common stock dividend; market value is $14 per share.Which of the following is the correct journal entry to record the transaction? (Round your answers to the nearest whole dollar.)


A) debit Stock Dividends $261,800 and credit Paid-In Capital in Excess of Par-Common $261,800
B) debit Stock Dividends $261,800, credit Common Stock Dividend Distributable $561, and credit Paid-In Capital in Excess of Par-Common $261,239
C) debit Stock Dividends $261,800 and credit Cash $261,800
D) debit Common Stock Dividend Distributable $561, debit Paid-In Capital in Excess of Par-Common $261,239, and credit Retained Earnings $261,800

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