Global Corporation Had 50,000 Shares of $20 Par Value Common

question 111

Multiple Choice

Global Corporation had 50,000 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 $27.The entry to record this dividend is:

• A)Debit Retained Earnings $135,000;credit Common Stock Dividend Distributable $135,000.
• B)Debit Retained Earnings $135,000;credit Cash $135,000.
• C)Debit Retained Earnings $135,000;credit Common Stock Dividend Distributable $100,000;credit Paid-In Capital in Excess of Par Value,Common Stock $35,000.
• D)Debit Retained Earnings $100,000;credit Common Stock Dividend Distributable $100,000.
• E)No entry is made until the stock is issueD.Retained earnings: 50,000 shares * 10% × $27 = $135,000

---

Definitions:

Bias

A tendency, inclination, or prejudice towards or against something or someone, often in a way considered to be unfair.

Performance Appraisal

A systematic evaluation process of an employee's job performance and productivity in relation to certain pre-established criteria and organizational objectives.

Validity

The extent to which performance on a measure (such as a test score) is related to what the measure is designed to assess (such as job performance).

Relevant

Pertaining to or connected with the matter at hand; applicable or significant to the topic being discussed.