The stockholders' equity of Pharoah Company at July 31, 2026 is presented below: Common stock, par value $20, authorized 400,000 shares; issued and outstanding 170000 shares Paid-in capital in excess of par Retained earnings $3400000 168000 656000 $4224000 On August 1, 2026, the board of directors of Pharoah declared a 16% stock dividend on common stock, to be distributed on September 15th. The market price of Pharoah's common stock was $68 on August 1, 2026, and $74 on September 15, 2026. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend? O $1305600. O $2012800. O $1020000.
The stockholders' equity of Pharoah Company at July 31, 2026 is presented below: Common stock, par value $20, authorized 400,000 shares; issued and outstanding 170000 shares Paid-in capital in excess of par Retained earnings $3400000 168000 656000 $4224000 On August 1, 2026, the board of directors of Pharoah declared a 16% stock dividend on common stock, to be distributed on September 15th. The market price of Pharoah's common stock was $68 on August 1, 2026, and $74 on September 15, 2026. What is the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend? O $1305600. O $2012800. O $1020000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
Transcribed Image Text:The stockholders' equity of Pharoah Company at July 31, 2026 is presented below:
Common stock, par value $20, authorized 400,000 shares;
issued and outstanding 170000 shares
Paid-in capital in excess of par
Retained earnings
$3400000
168000
656000
$4224000
On August 1, 2026, the board of directors of Pharoah declared a 16% stock dividend on common stock, to be distributed on
September 15th. The market price of Pharoah's common stock was $68 on August 1, 2026, and $74 on September 15, 2026. What is
the amount of the debit to retained earnings as a result of the declaration and distribution of this stock dividend?
O $1305600.
O $2012800.
O $1020000.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education