On January 1, Edmiston Corporation Had 1,600,000 Shares of $10

question 275

Multiple Choice

On January 1, Edmiston Corporation had 1,600,000 shares of $10 par value common stock outstanding. On March 31 the company declared a 10% stock dividend. Market value of the stock was $15/share. As a result of this event,

• A) Edmiston's Paid-in Capital in Excess of Par Value account increased $800,000.
• B) Edmiston's total stockholders' equity was unaffected.
• C) Edmiston's Stock Dividends account increased $2,400,000.
• D) All of these answer choices are correct.

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Definitions:

Corporate Officers

Senior executives or top managers within a corporation who are given authority by the board of directors to manage the day-to-day operations and make significant business decisions.

Directors

Members of a company's board responsible for making major policy and financial decisions, acting collectively in the best interests of the company and its shareholders.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, giving them ownership interests.

Articles Of Incorporation

A document that must be filed with a secretary of state to create a corporation. Usually, it includes the basic rights and responsibilities of the corporation and the shareholders.