A company originally issued 12,000 shares of $10 par value common stock at $11 per share. The board of directors declares a 11% stock dividend when the market price of the stock is $8 a share. Which of the following is included in the entry to record the declaration of a stock dividend? OA. Stock Dividends debited for $10,560. OB. Paid-In Capital in Excess of Par-Common is credited for $14,520. OC. Stock Dividends debited for $14,520. OD. Stock Dividends credited for $10,560.
A company originally issued 12,000 shares of $10 par value common stock at $11 per share. The board of directors declares a 11% stock dividend when the market price of the stock is $8 a share. Which of the following is included in the entry to record the declaration of a stock dividend? OA. Stock Dividends debited for $10,560. OB. Paid-In Capital in Excess of Par-Common is credited for $14,520. OC. Stock Dividends debited for $14,520. OD. Stock Dividends credited for $10,560.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company originally issued 12,000 shares of $10 par value common stock at $11 per share. The board of directors declares a 11% stock dividend when the market price of the stock is $8 a share.
Which of the following is included in the entry O record the declaration of a stock dividend?
OA. Stock Dividends is debited for $10,560.
O B. Paid-In Capital in Excess of Par-Common is credited for $14,520.
O C. Stock Dividends is debited for $14,520.
O D. Stock Dividends is credited for $10,560.
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