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A company originally issued 18,000 shares of $8 par value common stock at $12 per share. The board of directors declares an 10% stock dividend when the market price of the stock is $25 a share. Which of the following is included in the entry to record the declaration of a stock dividend? A. Common Stock $8 Par Value is credited 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.

A company originally issued 18,000 shares of $8 par value common stock at $12 per share. The board of directors declares an 10% stock dividend when the market price of the stock is $25 a share. Which of the following is included in the entry to record the declaration of a stock dividend? A. Common Stock $8 Par Value is credited 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.

FINANCIAL ACCOUNTING
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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A company originally issued 18,000 shares of $8 par value common stock at $12 per share. The board of directors declares an 10% stock dividend when the market price of the stock is $25 a share. Which of the following is included in the entry to record the declaration of a stock dividend? A. Common Stock $8 Par Value is credited 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.
Transcribed Image Text:A company originally issued 18,000 shares of $8 par value common stock at $12 per share. The board of directors declares an 10% stock dividend when the market price of the stock is $25 a share. Which of the following is included in the entry to record the declaration of a stock dividend? A. Common Stock $8 Par Value is credited 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.
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