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.

Assess the principles governing the liability or lack thereof for intervening and superseding causes.

Understand the concept of negligence and its defenses.

Identify the elements required to prove a negligence case.

Comprehend the legal duties of care in various situations.