Zeman,Inc.declares and distributes a 10% common stock dividend when it has 30,000 shares of $10 par value common stock outstanding.If the market value of the common stock is $30,the journal entry to record the stock dividend would include a:

Question

Quizplus · Accepted Answer

Debit Retained Earnings 20,000 × 10% × $30 = $60,000;credit Common Stock 20,000 × 10% × $20 par = $40,000;credit Paid-in Capital in Excess of Par-Common $60,000 - $40,000 = $20,000

Zeman,IncDeclares and Distributes a 10% Common Stock Dividend When It