On January 1, Soft Corporation Had 80,000 Shares of $10

question 78

Multiple Choice

On January 1, Soft Corporation had 80,000 shares of $10 par value common stock outstanding.On June 17, the company declared a 10% stock dividend to stockholders of record on June 20.The market value of the stock was $15 on June 17.The entry to record the transaction of June 17 would include a

• A)debit to Stock Dividends for $120,000.
• B)credit to Cash for $120,000.
• C)credit to Common Stock Dividends Distributable for $120,000.
• D)credit to Common Stock Dividends Distributable for $40,000.

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Definitions:

Mean

A statistical measure representing the average of a set of numbers, calculated by dividing the sum of all values by the number of values.

Parsimonious Theory

A theory that explains phenomena in the simplest way possible, using the fewest possible assumptions or variables.

Scientists

Professionals engaged in systematic activities to acquire knowledge that describes and predicts the natural world, typically through observations and experiments.

Correlation

A statistical measure that describes the size and direction of a relationship between two or more variables.