Juan Inc Has 1,000 Common Shares Issued at $100 and Currently

question 135

Multiple Choice

Juan Inc. has 1,000 common shares issued at $100 and currently trading at $200. The entry to record declaration of a 10% stock dividend is

• A) debit Common Stock Dividends Distributable $100,000, credit Retained Earnings $100,000.
• B) debit Retained Earnings $100,000, credit Cash $100,000.
• C) debit Stock Dividends $20,000, credit Common Stock Dividends Distributable $20,000.
• D) debit Common Stock Dividends Distributable $20,000, credit Common Shares $20,000.

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