Zeman,IncDeclares and Distributes a 10% Common Stock Dividend When It

question 69

Multiple Choice

Zeman,Inc.declares and distributes a 10% common stock dividend when it has 20,000 shares of $10 par value common stock outstanding.If the market value of the common stock is $25,the journal entry to record the stock dividend would include a:

• A)credit to Common Stock $50,000.
• B)credit to Common Stock $30,000.
• C)credit to Paid-in Capital in Excess of Par-Common $30,000.
• D)credit to Paid-in Capital in Excess of Par-Common $20,000.

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Definitions:

Automatic System

Cognitive processes that occur without conscious control or deliberation, typically fast and efficient, handling tasks such as perception, encoding, and simple decision-making.

Unconscious

The part of the mind that contains thoughts, memories, and desires not within the realm of current awareness.

Brain

The organ located in the head of an animal that coordinates its behavior and processes sensory information; it's the center of the nervous system in humans and other vertebrates.

Information

Data, knowledge, or details that are provided or learned about something or someone.