Gordon Corporation Reported the Following Equity Section on Its Current

question 20

Multiple Choice

Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $11.50 per share.
$$\begin{array} { | l | r | } \hline\text { Common stock, } \$ 5 \text { par, } 100,000 \text { shares authorized, } 40,000 \text { shares } &\\\text { issued } & \$ 200,000 \\ \hline \text { Paid in capital in excess of par-common } & 120,000 \\\hline \text { Retained earnings } & \underline { 290,000 } \\\hline \text { Total stockholders' equity } & \$ \underline { 610,000 }\\\hline\end{array}$$
-
What would be the balance in the Common stock account after the issuance of a 10% stock dividend?

• A) $200,000
• B) $246,000
• C) $220,000
• D) $226,000

---

Definitions:

Smartphones

Handheld electronic devices that combine mobile telephone and computing functions, capable of running various applications.

Operating Systems

The software that manages all the hardware and software resources on a computer, providing a base for application programs and acting as an intermediary between the user and the computer hardware.

File

A collection of data or information that has a name, called a filename, and is stored on a computer or digital device.

Utility

Software designed to help manage, maintain, and control computer resources, such as system tools for optimizing performance.