Global Corporation Had 50,000 Shares of $20 Par Value Common

question 122

Multiple Choice

Global Corporation had 50,000 shares of $20 par value common stock outstanding on July 1.Later that day the board of directors declared a 10% stock dividend when the market value of each share was $27.The entry to record the dividend declaration is:

• A)Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $135,000.
• B)Debit Retained Earnings $135,000; credit Cash $135,000.
• C)Debit Retained Earnings $135,000; credit Common Stock Dividend Distributable $100,000; credit Paid-In Capital in Excess of Par Value,Common Stock $35,000.
• D)Debit Retained Earnings $100,000; credit Common Stock Dividend Distributable $100,000.
• E)No entry is made until the stock is issued.

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