Use the Following Information for Questions

question 61

Multiple Choice

Use the following information for questions
On January 1, BearBack Corporation had 300,000 common shares issued.On April 10, the company declared a 10% stock dividend to be distributed on April 30.The market value of the shares was $7 on April 10 and $10 on April 30.
-The entry to record the transaction of April 30 would include a

• A)credit to Cash for $210,000.
• B)debit to Stock Dividends Distributable for $210,000.
• C)credit to Retained Earnings for $300,000.
• D)debit to Dividends Declared for $210,000.

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Definitions:

Paid-in Capital

The total amount of money investors have contributed to a company in exchange for shares of stock.

Stock Dividend

A dividend payment made in the form of additional shares rather than cash, increasing the number of shares owned by shareholders.

Stockholders' Equity

The residual interest or ownership in the assets of a corporation after deducting liabilities, often referred to as shareholders' equity.

Stock Dividend

A form of dividend payment made in shares of stock rather than cash, often signaling a company's growth prospects or lack of sufficient cash flow.