Global Corporation had 60,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $30. The entry to record the dividend declaration is: Multiple Choice Debit Retained Earnings $180,000; credit Cash $180,000. Debit Retained Earnings $180,000; credit Common Stock Dividend Distributable $120,000; credit Paid-In Capital in Excess of Par Value, Common Stock $60,000. Debit Retained Earnings $120,000; credit Common Stock Dividend Distributable $120,000. No entry is made until the stock is issued. Debit Retained Earnings $180,000; credit Common Stock Dividend Distributable $180,0000.

Global Corporation had 60,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 10% stock dividend when the market value of each share was $30. The entry to record the dividend declaration is: Multiple Choice Debit Retained Earnings $180,000; credit Cash $180,000. Debit Retained Earnings $180,000; credit Common Stock Dividend Distributable $120,000; credit Paid-In Capital in Excess of Par Value, Common Stock $60,000. Debit Retained Earnings $120,000; credit Common Stock Dividend Distributable $120,000. No entry is made until the stock is issued. Debit Retained Earnings $180,000; credit Common Stock Dividend Distributable $180,0000.

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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