A Corporation Reported the Following Equity Section on Its Current

question 8

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. $\begin{array} { | l | r | } \hline \text { Common stock, } \$ 5 \text { par, } 100,000 \text { shares authorized, } 50,000 \text { shares issued } & \$ 250,000 \\\hline \text { Paid in capital in excess of par } - \text { common } & 150,000 \\\hline \text { Retained earnings } & \underline { 500,000 } \\\hline \text { Total stockholders' equity } & \$ 900,000 \\\hline\end{array}$ Which of the following would be included in the entry to record the distribution of a 15% stock dividend?

• A) Common Stock-$5 Par Value would be credited for $37,500.
• B) Retained Earnings would be debited for $35,000.
• 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:

HomeGroup Features

A feature in some Windows operating systems that allows for the easy sharing of files and printers within a home network.

Network Resources

Various assets available over a network, such as printers, files, data, or applications, that can be shared among devices connected to the network.

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An independently owned and operated company that is limited in size and revenue according to the industry and country in which it operates.

Router

A networking device that forwards data packets between computer networks, providing an interface between local networks and the internet.