Atkins Company Had 20,000 Shares of $5 Par Value Common

question 78

Multiple Choice

Atkins Company had 20,000 shares of $5 par value common stock outstanding prior to a 10% common stock dividend declaration and distribution.The market value of the common stock on the declaration date was $11.Which of the following statements correctly describes the affect of the common stock dividend and declaration?

• A)Retained earnings decreased $22,000.
• B)Retained earnings decreased $10,000.
• C)Total stockholders' equity decreased $22,000.
• D)Total stockholders' equity decreased $10,000.

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