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A Company Originally Issued 10,000 Shares of $5 Par Value

Question 132

Multiple Choice

A company originally issued 10,000 shares of $5 par value common stock at $12 per share.The board of directors declares a 16% stock dividend when the market price of the stock is $21 a share.Which of the following is included in the entry to record the declaration of a stock dividend?


A) Stock Dividends is debited for $33,600.
B) Stock Dividends is credited for $33,600.
C) Stock Dividends is debited for $19,200.
D) Paid-In Capital in Excess of Par-Common is credited for $19,200.

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