Al-Morooj Corporation currently has 120,000 shares outstanding of OR 1 par value common stock. The stock was originally issued for OR 12 per share. On March 15, the board of directors declares a 10% stock dividend when the stock is selling for OR 16 per share. What is the journal entry to record the stock dividend? Select one: A. Dr. Retained earnings 180,000 Cr. Common stock 12,000 Paid-in capital in excess of par 168,000 B. Dr. Retained earnings 192,000 Cr. Common stock 12,000 Paid-in capital in excess of par 180,000 C. Dr. Retained earnings 1920,000 Cr. Common stock 120,000 Paid-in capital in excess of par 1800,000 D. Dr. Retained earnings 192,000 Cr. Common stock 192,000
Al-Morooj Corporation currently has 120,000 shares outstanding of OR 1 par value common stock. The stock was originally issued for OR 12 per share. On March 15, the board of directors declares a 10% stock dividend when the stock is selling for OR 16 per share. What is the journal entry to record the stock dividend? Select one: A. Dr. Retained earnings 180,000 Cr. Common stock 12,000 Paid-in capital in excess of par 168,000 B. Dr. Retained earnings 192,000 Cr. Common stock 12,000 Paid-in capital in excess of par 180,000 C. Dr. Retained earnings 1920,000 Cr. Common stock 120,000 Paid-in capital in excess of par 1800,000 D. Dr. Retained earnings 192,000 Cr. Common stock 192,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Al-Morooj Corporation currently has 120,000
shares outstanding of OR 1 par value
common stock. The stock was originally
issued for OR 12 per share. On March 15,
the board of directors declares a 10% stock
dividend when the stock is selling for OR 16
per share. What is the journal entry to record
the stock dividend?
Select one:
A. Dr. Retained earnings
180,000
Cr. Common stock
12,000
Paid-in capital in excess of
par
168,000
B. Dr. Retained earnings
192,000
Cr. Common stock
12,000
Paid-in capital in excess of
par
180,000
C. Dr. Retained earnings
1920,000
Cr. Common stock
120,000
Paid-in capital in excess of
par
1800,000
D. Dr. Retained earnings
192,000
Cr. Common stock
192,000
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