21) Below note the Shareholders' Equity account of Goodman Company at the beginning of March 5: Common Stock--$10 par value, 800,000 shares authorized, 80,000 shares issued and outstanding Paid-in Capital in Excess of Par value, common stock Retained Earnings $ 800,000 $ 300,000 $ 400,000 $ 1,500,000 Total Stockholders' Equity On March 5, the directors declared a 20% stock dividend distributable on March 28 to the shareholders of record on March 15. The stock's market value is $30 per share on March 5 before the stock dividend. Which of the following statements is accurate regarding the Journal Entry on March 5? A) The number of additional common shares is 16,000 and Paid-in Capital in excessive of par, Common Stock is credited $160,000 B) The number of additional common shares is 16,000 and Retained Earnings is debited $480,000 C) The number of additional common shares is 80,000 and Retained Earnings is debited $480,000 D) The number of additional common shares is 80,000 and Retained Earnings is debited $240,000
21) Below note the Shareholders' Equity account of Goodman Company at the beginning of March 5: Common Stock--$10 par value, 800,000 shares authorized, 80,000 shares issued and outstanding Paid-in Capital in Excess of Par value, common stock Retained Earnings $ 800,000 $ 300,000 $ 400,000 $ 1,500,000 Total Stockholders' Equity On March 5, the directors declared a 20% stock dividend distributable on March 28 to the shareholders of record on March 15. The stock's market value is $30 per share on March 5 before the stock dividend. Which of the following statements is accurate regarding the Journal Entry on March 5? A) The number of additional common shares is 16,000 and Paid-in Capital in excessive of par, Common Stock is credited $160,000 B) The number of additional common shares is 16,000 and Retained Earnings is debited $480,000 C) The number of additional common shares is 80,000 and Retained Earnings is debited $480,000 D) The number of additional common shares is 80,000 and Retained Earnings is debited $240,000
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings
Section: Chapter Questions
Problem 11SPA
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