The declaration and issuance of a dividend in shares (stock dividend) greater than 25% of the shares previously in circulation (outstanding) a. increases contributed capital in excess of par value but does not change shareholders' equity. b. increases common stock outstanding and increases total stockholders' equity. c. it decreases retained earnings but does not change total stockholders' equity.

The declaration and issuance of a dividend in shares (stock dividend) greater than 25% of the shares previously in circulation (outstanding) a. increases contributed capital in excess of par value but does not change shareholders' equity. b. increases common stock outstanding and increases total stockholders' equity. c. it decreases retained earnings but does not change total stockholders' equity.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 14MC: Which of the following is true of a stock dividend? A. It is a liability. B. The decision to issue a...

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14) The declaration and issuance of a stock dividend: A) Does not change retained earnings or paid-in capital. B) Does not change total assets, liabilities, or total stockholders' equity. C) Decreases assets and decreases total stockholders' equity. D) Decreases total stockholders' equity and increases common stock.
The declaration and issuance of a share dividend a. increases ordinary shares outstanding and increases total equity. b. increases retained earnings and increases total equity. c. decreases retained earnings but does not change total equity. d. may increase share premium but does not change total equity.
When a stock dividend is declared and issued: Multiple Cholce total stockholders' equity does not change. total paid-in capital does not change. retained earnings is normally decreased by the par value of the shares issued in the dividend. total pald-in capital is decreased by the market value of the shares issued in the dividend.
Current Attempt in Progress Identify the effect the declaration of a stock dividend has on total share capital, retained earnings, and shareholders' equity. O O O Total Share Capital Retained Earnings no effect increase decrease increase increase decrease decrease decrease Shareholders' Equity increase decrease no effect no effect
The entry to record the issuance of common stock at a price above its par value includes a A) an increase to cash. B) an increase to a liability account for the difference between the price paid by the stockholders and the par value of stock. C) an increase to additional paid-in capital: common stock D) a decrease to common stock
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... ESPAÑOL INGLÉS FRANCÉS The declaration and issuance of a dividend in shares (stock dividend) greater than 25% of the shares previously in circulation (outstanding) to. increases contributed capital in excess of par value but does not change shareholders' equity. b. increases common stock outstanding and increases total stockholders' equity. C. it decreases retained earnings but does not change total stockholders' equity. Enviar comentarios MacBook Air DI DD FZ F8 F9 F10 F11 F12
When a company buys shares of its own stock to be held in treasury, it records a reduction in: C . assets and an increase in shareholders’ equity.
When a company buys shares of its own stock to be held in treasury, it records a reduction in: B . both assets and shareholders’ equity.