Odessa Corporation Had 20,000 Shares of $2 Par Value Common

question 160

Multiple Choice

Odessa Corporation had 20,000 shares of $2 par value common stock outstanding on July 1.On that day,the board of directors declared a 10% stock dividend when the market value of each share was $9.The stock dividend is to be distributed on July 20 to stockholders of record on July 10.The entry to record the dividend declaration is:

• A)Debit Retained Earnings $18,000; credit Common Stock Dividend Distributable $18,000.
• B)Debit Retained Earnings $18,000; credit Common Stock Dividends Distributable $4,000; credit Paid-In Capital in Excess of Par Value,Common Stock $14,000.
• C)Debit Retained Earnings $18,000; credit Common Stock $4,000; credit Paid-In Capital in Excess of Par Value,Common Stock $14,000.
• D)Debit Retained Earnings $18,000; credit Common Stock $18,000.
• E)No entry is made until the stock is issued.

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Definitions:

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Includes the 55 million people born between 1965 and 1980. Also called the baby bust.

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A demographic cohort following Generation X, generally born between the early 1980s and the mid-1990s to early 2000s.

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A concept or term sometimes used to describe a cohort of individuals who are perceived as being involved in making significant societal changes or technological advances.

Baby Bust

A period marked by a significant decrease in birth rates.