Wallendo Corporation Issued 5,000 Shares of Its $1 Par Value

question 89

Multiple Choice

Wallendo Corporation issued 5,000 shares of its $1 par value common stock as a stock dividend when the shares were selling for $10 per share. At the time of the dividend, Wallendo had 100,000 shares of common stock outstanding. These shares were originally issued for $5 per share. The entry to record the stock dividend includes a debit to Retained Earnings for:

• A)$50,000.
• B)$105,000.
• C)$5,000.
• D)$100,000.

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Definitions:

Organizations

Entities comprising multiple individuals working together towards a shared goal or purpose, structured in a way that aims to achieve efficiency and effectiveness.

Social Exchange

A theoretical framework that explains social interactions and relationships in terms of exchanges of resources, including material goods and social currencies like approval or prestige.

Management Function

Activities such as planning, organizing, leading, and controlling that are performed to efficiently and effectively coordinate the use of resources to achieve organizational objectives.

Performance Objectives

Specific, measurable goals set to evaluate the effectiveness of individuals or teams within an organizational context.