A corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $25.00 per share. Common Stock, $6 par, 126,000 shares authorized, 56,000 shares issued and outstanding Paid in Capital in Excess of Par Retained Earnings Total Stockholders' Equity $336,000 178,000 600,000 $1,114,000 Which of the following would be included in the entry to record the distribution of a 15% stock dividend? O Common Stock-$6 Par Value would be credited for $50,400. O Paid-In Capital in Excess of Par-Common is debited for $113,400. O Stock Dividends would be debited for $113,400. Stock Dividends would be credited for $50,400.

A corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $25.00 per share. Common Stock, $6 par, 126,000 shares authorized, 56,000 shares issued and outstanding Paid in Capital in Excess of Par Retained Earnings Total Stockholders' Equity $336,000 178,000 600,000 $1,114,000 Which of the following would be included in the entry to record the distribution of a 15% stock dividend? O Common Stock-$6 Par Value would be credited for $50,400. O Paid-In Capital in Excess of Par-Common is debited for $113,400. O Stock Dividends would be debited for $113,400. Stock Dividends would be credited for $50,400.

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter13: Corporations: Organization, Stock Transactions, And Dividends

Section: Chapter Questions

Problem 3PA: The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the...

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The following selected accounts appear in the ledger of EJ Construction Inc. at the beginning of the current fiscal year: During the year, the corporation completed a number of transactions affecting the stockholders equity. They are summarized as follows: a. Issued 500,000 shares of common stock at 8, receiving cash. b. Issued 10,000 shares of preferred 1% stock at 60. c. Purchased 50,000 shares of treasury common for 7 per share. d. Sold 20,000 shares of treasury common for 9 per share. e. Sold 5,000 shares of treasury common for 6 per share. f. Declared cash dividends of 0.50 per share on preferred stock and 0.08 per share on common stock. g. Paid the cash dividends. Instructions Journalize the entries to record the transactions. Identify each entry by letter.
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