Use This Information to Answer the Following Question

question 74

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 30 would be:

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

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Definitions:

Mutual Agreement

A concord reached voluntarily between two or more parties on a set of terms or conditions.

Negotiation

The process where two or more parties discuss an issue to reach a mutually acceptable agreement.

Communication Process

The exchange of information and understanding from one person to another, involving a sender, message, medium, and receiver.

Art Gallery

A place where artworks are displayed and sold to the public.