A company originally issued 18,000shares of $8 par value common stockat $12 per share. The board ofdirectors declares an 10% stockdividend when the market price of thestock is $25 a share. Which of thefollowing is included in the entry torecord the declaration of a stockdividend?A. Common Stock $8 Par Value iscredited for $43,200.B. Stock Dividends is debited for$45,000.C. Stock Dividends is debited for$22,500.D. Common Stock is credited for$45,000.

DECLARATION OF DIVIDENDSDividend is the amount paid by the Corporation its shareholders in return…

Answered: A company originally issued 18,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, Pharoah Company had 87000 shares of $10 par value common stock outstanding. On May 7, the company declared a 5% stock dividend to stockholders of record on May 21. Market value of the stock was $16 on May 7. The stock was distributed on May 24. The entry to record the transaction of May 24 would include a
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