9. Global Corporation had 54,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 25% stock dividend when the market value of each share was $26. The entry to record the dividend declaration is: A. Debit Retained Earnings $270,000; credit Common Stock Dividend Distributable $270,000 B. Debit Retained Earnings $351,000; credit Common Stock Dividend Distributable $351,000 C. Debit Retained Earnings $351,000; credit Cash $351,000 D. Debit Retained Earnings $351,000; credit Common Stock Dividend Distributable $270,000; credit Paid-In Capital in Excess of Par Value, Common Stock $81,000 E. No entry is made until the stock is issued
9. Global Corporation had 54,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 25% stock dividend when the market value of each share was $26. The entry to record the dividend declaration is: A. Debit Retained Earnings $270,000; credit Common Stock Dividend Distributable $270,000 B. Debit Retained Earnings $351,000; credit Common Stock Dividend Distributable $351,000 C. Debit Retained Earnings $351,000; credit Cash $351,000 D. Debit Retained Earnings $351,000; credit Common Stock Dividend Distributable $270,000; credit Paid-In Capital in Excess of Par Value, Common Stock $81,000 E. No entry is made until the stock is issued
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:9. Global Corporation had 54,000 shares of $20 par value common stock outstanding on July 1.
Later that day the board of directors declared a 25% stock dividend when the market value of
each share was $26. The entry to record the dividend declaration is:
A. Debit Retained Earnings $270,000; credit Common Stock Dividend Distributable $270,000
B. Debit Retained Earnings $351,000; credit Common Stock Dividend Distributable $351,000
C. Debit Retained Earnings $351,000; credit Cash $351,000
D. Debit Retained Earnings $351,000; credit Common Stock Dividend Distributable $270,000;
credit Paid-In Capital in Excess of Par Value, Common Stock $81,000
E. No entry is made until the stock is issued
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