Williamson Company Declared and Distributed a 10% Stock Dividend When

question 93

Multiple Choice

Williamson Company declared and distributed a 10% stock dividend when it had 150,000 shares of $1 par value common stock outstanding.The market price per share of common stock was $10 per share when the dividend was declared.The journal entry to record the stock dividend would include a credit to:

• A)Retained Earnings $150,000.
• B)Paid-in Capital in Excess of Par-Common $135,000.
• C)Common Stock $150,000.
• D)Retained Earnings $15,000.

---

Definitions:

Writing Requirement

The writing requirement refers to a legal principle that certain agreements or contracts must be in written form and signed by the parties involved to be legally enforceable.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the party to be charged, to be enforceable.

Executory Contracts

Contracts under which both parties have obligations that are not yet fulfilled.

Technical Meaning

Specific definitions or interpretations of terms and concepts unique to a particular field or discipline, distinct from common or layperson understandings.