Additional Paid-in Capital $0 Common Retained Stock Earnings a. $0 b. $150,000 cr $0 $3,800,000 dr $3,950,000 dr c. $150,000 cr $150,000 cr $4,100,000 dr d. $300,000 cr $300,000 dr $3,800,000 dr
Cash dividends on the $10 par value common stock of Garrett Company were as follows:
1st quarter of 2019 $ 800,000 2nd quarter of 2019 900,000 3rd quarter of 2019 1,000,000 4th quarter of 2019 1, 100,000
The 4th-quarter cash dividend was declared on December 21, 2019, to shareholders of record on December 31, 2019. Payment of the 4th quarter cash dividend was made on january 18, 2020. In addition, Garrett declared a 5% stock dividend on its $10 par value common stock on December 3, 2019, when there were 300,000 shares issued and outstanding and the market value of the common stock was $20 per share. The shares were issued on December 24, 2019. What was the effect on Garrett’s shareholders’ equity accounts as a result of the preceding transactions?
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