The B Spaniel Company Has Common Stock with a $5 Par

question 125

Multiple Choice

The B. Spaniel Company has Common Stock with a $5 par value. 100,000 shares were authorized and 25,000 shares were issued. Common stock is currently selling at $13 per share. The entry to record the distribution of a 15% common stock dividend includes a:

• A)debit to Retained Earnings for $37,500.
• B)credit to Common Stock for $37,400.
• C)credit to Paid-in Capital in Excess of Par Value-Common for $30,000.
• D)debit to Paid-in Capital in Excess of Par Value-Common for $30,000.

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Definitions:

Statistical Procedures

A set of methods used to collect, analyze, interpret, and present data in a meaningful way.

Research Methods

Systematic techniques used in scientific studies to collect, analyze, and interpret data.

Collecting Data

The process of gathering and measuring information on variables of interest in a systematic fashion.

Direct Observation

The method of gathering data by watching subjects in their natural environment without intervention or manipulation.