A Corporation Reported the Following Equity Section on Its Current

question 126

Multiple Choice

A corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $12.00 per share. Which of the following would be included in the entry to record a 10% stock dividend?

• A)Common stock would be credited for $25,000.
• B)Common stock would be debited for $25,000.
• C)Paid-in capital in excess of par-common is debited for $35,000.
• D)Retained earnings would be credited for $60,000.

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Definitions:

Cardia

The region where the esophagus connects to the stomach, acting as a crucial entry point for food into the stomach.

Body

Refers to the physical structure of an organism, including its bones, muscles, organs, and other tissues.

Fundus

The upper part of an organ, often referring to the upper portion of the stomach or the uterus.

Pylorus

The part of the stomach that connects to the duodenum and acts as a valve to control the flow of partially digested food.