Use this information to answer the following question. Pinnacle Corporation has 90,000 shares of $10 par value common stock outstanding.The following transactions occurred during the year:
Mar. 17 Declared a 10 percent stock dividend to stockholders of record on March 20. Market value of the stock was $22 on March 17.
Mar. 30 Distributed the stock dividend.
-The entry to record the transaction of March 30 is:
A)Common Stock Distributable 90,000 Common Stock 90,000
B)Common Stock Distributable 90,000 Retained Earnings 108,000
Common Stock 198,000
C)Common Stock Distributable 198,000 Common Stock 90,000
Additional Paid-in Capital 108,000
D)Common Stock Distributable 90,000 Cash 90,000

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The Answer of Use this information to answer the following question. Pinnacle Corporation has 90,000 shares of $10 par value common stock outstanding.The following transactions occurred during the year:
Mar. 17 Declared a 10 percent stock dividend to stockholders of record on March 20. Market value of the stock was $22 on March 17.
Mar. 30 Distributed the stock dividend.
-The entry to record the transaction of March 30 is:
A)Common Stock Distributable 90,000 Common Stock 90,000
B)Common Stock Distributable 90,000 Retained Earnings 108,000
Common Stock 198,000
C)Common Stock Distributable 198,000 Common Stock 90,000
Additional Paid-in Capital 108,000
D)Common Stock Distributable 90,000 Cash 90,000

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