Use This Information to Answer the Following Question

question 169

Multiple Choice

Use this information to answer the following question. Hernandez Corporation has 60,000 shares of $20 par value common stock outstanding.The following transactions occurred during the year:
The entry to record the transaction of March 17 would be:

• A) Stock Dividends 156,000 Common Stock Distributable 120,000 Additional Paid-in Capital 36,000
• B) Common Stock Distributable 120,000 Common Stock 120,000
• C) Common Stock Distributable 156,000 Common Stock 120,000 Retained Earnings 36,000
• D) Stock Dividends 156,000 Cash 156,000

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Definitions:

Reality

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Favored Team

The team or group that is generally expected or predicted to win a competition or achieve success due to its superior position or abilities.

Potential Penalties

Possible sanctions or punishments that could be imposed as a consequence of breaking a law or rule.

Independent Observers

Individuals or entities that are not involved in the actions or events being observed, ensuring unbiased and objective reporting or analysis.