Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000 shares. At the time of the stock dividend, the market value per share was $12. The entry to record the declaration of this dividend is: Multiple Choice No entry is needed. Debit Retained Earnings $30,000; credit Common Stock Dividend Distributable $30,000. Debit Retained Earnings $36.000
Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000 shares. At the time of the stock dividend, the market value per share was $12. The entry to record the declaration of this dividend is: Multiple Choice No entry is needed. Debit Retained Earnings $30,000; credit Common Stock Dividend Distributable $30,000. Debit Retained Earnings $36.000
Related questions
Question
Transcribed Image Text:Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000
shares. At the time of the stock dividend, the market value per share was $12. The entry to record the declaration of this dividend is:
Multiple Choice
No entry is needed.
Debit Retained Earnings $30,000; credit Common Stock Dividend Distributable $30,000.
Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $36,000.
Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $30,000; credit Paid-In Capital in Excess of Par Value,
Common Stock $6,000.
Debit Common Stock Dividend Distributable $36,000; credit Retained Earnings $36,000.
7
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
