On January 1, Soft Corporation Had 80,000 Shares of $10

question 315

Multiple Choice

On January 1, Soft Corporation had 80,000 shares of $10 par value common stock outstanding. On June 17, the company declared a 10% stock dividend to stockholders of record on June 20. Market value of the stock was $15 on June 17. The stock was distributed on June 30. The entry to record the transaction of June 30 would include a

• A) credit to Common Stock for $80,000.
• B) debit to Common Stock Dividends Distributable for $120,000.
• C) credit to Paid-in Capital in Excess of Par for $40,000.
• D) debit to Stock Dividends for $40,000.

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Definitions:

Full-Service

A type of service that provides comprehensive coverage of needs or requirements in a particular area, offering a wide range of services or features.

Rack Jobber

A company that provides and manages inventory for retail shelves, often specializing in music, magazines, books, or electronics, and retaining ownership until items are sold.

Consignment

An arrangement where goods are left with a third party to sell, but the ownership remains with the supplier until the goods are sold.

General Merchandise

A category of products that includes a wide variety of items, typically found in a department store or retail outlet, not limited to any specific category.