Arnold, Inc

question 66

Multiple Choice

Arnold, Inc. declares and distributes a 10% common stock dividend when it has 70,000 shares of $100 par value common stock outstanding. If the market value of the common stock is $20, the journal entry to record the stock dividend would include a:

• A)debit to Retained Earnings $140,000.
• B)debit to Retained Earnings $700,000.
• C)credit to Paid-in Capital in Excess of Par-Common $140,000.
• D)credit to Paid-in Capital in Excess of Par-Common $700,000.

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Definitions:

Fixed Ratio Schedule

A schedule of reinforcement where a response is reinforced only after a specified number of responses.

Fixed Ratio

A schedule of reinforcement where a response is rewarded only after a specified number of responses, often used in learning and conditioning.

Gym

A facility equipped with specialized equipment for strength, cardio, and flexibility training, aimed at improving physical fitness.

Reward

A positive reinforcement given following a desired behavior, with the aim of increasing the likelihood of the behavior occurring again.