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On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is: Multiple Choice Debit Retained Earnings $840,000; credit Common Stock $840,000. No entry is made for this transaction. Debit Retained Earnings $840,000; credit Common Stock Split Distributable $840,000.

On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is: Multiple Choice Debit Retained Earnings $840,000; credit Common Stock $840,000. No entry is made for this transaction. Debit Retained Earnings $840,000; credit Common Stock Split Distributable $840,000.

FINANCIAL ACCOUNTING
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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On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is: Multiple Choice Debit Retained Earnings $840,000; credit Common Stock $840,000. No entry is made for this transaction. Debit Retained Earnings $840,000; credit Common Stock Split Distributable $840,000. < Prev 4 of 30 Next > ...
Transcribed Image Text:On September 1, Ziegler Corporation had 56,000 shares of $5 par value common stock, and $168,000 of retained earnings. On that date, when the market price of the stock is $15 per share, the corporation issues a 2-for-1 stock split. The general journal entry to record this transaction is: Multiple Choice Debit Retained Earnings $840,000; credit Common Stock $840,000. No entry is made for this transaction. Debit Retained Earnings $840,000; credit Common Stock Split Distributable $840,000. < Prev 4 of 30 Next > ...
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