Williamson Company Declared and Distributed a 10% Stock Dividend When

question 144

Multiple Choice

Williamson Company declared and distributed a 10% stock dividend when it had 200,000 shares of $1 par value common stock outstanding. The market price per share of common stock was $60 per share when the dividend was declared. The journal entry to record the stock dividend would include a credit to:

• A)Retained Earnings $200,000.
• B)Paid-in Capital in Excess of Par-Common $1,180,000.
• C)Common Stock $200,000.
• D)Retained Earnings $20,000.

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Definitions:

Sense of Control

The belief or perception that one has the power to influence events and outcomes in their life.

Painful Experience

An unpleasant sensory and emotional experience associated with actual or potential tissue damage.

Dangerous to Humans

Referring to substances, actions, or organisms that pose a risk of harm or injury to human beings.

Gradual Exposure

A therapeutic technique involving slowly and progressively introducing a person to a feared object or situation to reduce anxiety.