Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for OMR 11.50 per share.Common stock, OMR 5 par, 100,000 shares authorized, 40,000 shares issuedOMR 200,000Paid in capital in excess of par—common120,000Retained earnings290,000Total stockholders' equityOMR 610,000If the company declared and issued 10% stock dividend? What will the number of issued shares Select one:a. 20,000 sharesb. 44,000 sharesc. 40,000 sharesd. 4,000 shares

If dividend is issued in form of stock instead of cash then such dividend is called as Stock…

Answered: Gordon Corporation reported the…

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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Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for OMR 11.50 per share.

Common stock, OMR 5 par, 100,000 shares authorized, 40,000 shares issued	OMR 200,000
Paid in capital in excess of par—common	120,000
Retained earnings	290,000
Total stockholders' equity	OMR 610,000

If the company declared and issued 10% stock dividend? What will the number of issued shares

Select one:

a. 20,000 shares

b. 44,000 shares

c. 40,000 shares

d. 4,000 shares

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