Foster Corporation Has 800,000 Shares of $3 Par Value Common

question 116

Multiple Choice

Foster Corporation has 800,000 shares of $3 par value common stock authorized,and 350,000 shares issued and outstanding.The market value of the stock is $22 per share.The journal entry to record the declaration of a 75% stock dividend would include a:

• A)credit to dividend payable for $1,800,000
• B)credit to Common Stock Dividends Distributable for $787,500
• C)debit to Retained Earnings for $5,775,000
• D)credit to Common Stock Dividends Distributable for $4,987,500

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Definitions:

Close Relationships

Bonds or connections characterized by strong emotional ties, mutual support, and ongoing personal interaction.

Distant Relationships

Connections or affiliations between individuals or entities that lack close proximity or frequent interaction.

5S

A workplace organization method originating from Japan that stands for Sort, Set in order, Shine, Standardize, and Sustain.

Lean Production

A manufacturing methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity.