Happy Holiday, Inc

question 77

Multiple Choice

Happy Holiday, Inc. has 100,000 shares of common stock issued and outstanding, with a par value of $0.01 per share. They distributed a 15% common stock dividend; market value is $12 per share. Which of the following is the correct journal entry to record the transaction?

• A) Debit Retained earnings $180,000 and credit Paid-in capital $180,000.
• B) Debit Retained earnings $180,000, credit Common stock $150 and credit Paid-in capital $179,850.
• C) Debit Retained earnings $180,000 and credit Cash $180,000.
• D) Debit Common stock $150, debit Paid-in capital $179,850 and credit Retained earnings $180,000.

---

Definitions:

Social Deficiencies

Refers to the lack of social skills or abilities that prevents individuals from interacting effectively within a society or certain social situations.

Physiological Deficiencies

Lack or shortage in the body of essential nutrients or substances required for normal biological functioning.

Physiological Needs

Physiological needs are the basic requirements for human survival, such as air, food, water, shelter, clothing, and warmth, which must be met before individuals can focus on higher-level needs.

Esteem Needs

Psychological requirements for respect, self-esteem, and recognition, as part of Maslow's hierarchy of needs.