Following is the stockholders’ equity section of the balance sheet of the Spaniel Company: Paid-in capital: Preferred stock, $100 par value, 20,000 shares authorized, 4,000 shares issued $400,000 Paid-in capital in excess of par value-preferred 16,000 Common stock, $5 par value, 100,000 shares authorized, 30,000 shares issued 150,000 Paid-in capital in excess of par value-common 105,000 Total paid-in capital $671,000 Retained earnings 267,000 Total stockholders’ equity $938,000 The preferred stock is currently selling for $102.25 per share, and the common stock is currently selling for $11.50 per share. The entry to record the distribution of a 15% common stock dividend includes a: A. credit to Paid-in Capital in Excess of Par Value–Common for $29,250 B. credit to Common Stock for $51,750 C. debit to Retained Earnings for $115,000
Following is the
Paid-in capital:
4,000 shares issued $400,000
Paid-in capital in excess of par value-preferred 16,000
Common stock, $5 par value, 100,000 shares authorized,
30,000 shares issued 150,000
Paid-in capital in excess of par value-common 105,000
Total paid-in capital $671,000
Total stockholders’ equity $938,000
The preferred stock is currently selling for $102.25 per share, and the common stock is currently selling for $11.50 per share.
The entry to record the distribution of a 15% common stock dividend includes a:
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