Tutu Corp issues an 8% stock dividend to shareholders of record on July 8 at a time when the market price of the stock was $14 and although the shares were no par value, all 11,000,000 shares had been issued at $12. Multiple Choice a. Tutu would use the $14 and not the $12 as the basis for making its journal entries b. Choices a, b and c are all correct statements c. Tutu would debit Retained Earnings on the date of declaration d. Tutu would credit Stock Dividends on the date of declaration e. Choices a, b and c are all incorrect statements Please avoid plagiarism and give proper explanation thanku

Tutu Corp issues an 8% stock dividend to shareholders of record on July 8 at a time when the market price of the stock was $14 and although the shares were no par value, all 11,000,000 shares had been issued at $12. Multiple Choice a. Tutu would use the $14 and not the $12 as the basis for making its journal entries b. Choices a, b and c are all correct statements c. Tutu would debit Retained Earnings on the date of declaration d. Tutu would credit Stock Dividends on the date of declaration e. Choices a, b and c are all incorrect statements Please avoid plagiarism and give proper explanation thanku

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 4RE: Use the same facts as in RE 16-3, but instead assume that Pickens declares and issues a 50% stock...

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