Dan Druff Shampoo Has 1,000,000 Shares of Common Stock Authorized

question 170

Multiple Choice

Dan Druff Shampoo has 1,000,000 shares of common stock authorized with a par value of $1 per share, of which 500,000 shares are outstanding. When the market value was $9 per share, Druff issued a stock dividend by which for each ten shares held, one share was issued as a stock dividend. The par per share did not change. What entry did Druff record for this transaction?

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Definitions:

Homo Erectus

Extinct hominin that arose about 1.8 million years ago in East Africa; migrated out of Africa.

Homo Floresiensis

A species of small-statured humans that lived on the Indonesian island of Flores until roughly 50,000 years ago.

Cartilaginous Fish

Jawed fish with a skeleton of cartilage; a shark, ray, or skate.

Sharks

Cartilaginous fishes belonging to the subclass Elasmobranchii, known for their sharp teeth and predatory nature, playing a crucial role in maintaining marine ecosystem balance.