Dolanski Company Declares and Distributes a 50% Common Stock Dividend

question 56

Multiple Choice

Dolanski Company declares and distributes a 50% common stock dividend when it has 20,000 shares of $10 par common stock outstanding.The market price per share is $50 at the date of declaration.What journal entry is prepared?

• A)debit Retained Earnings $500,000,credit Common Stock $100,000 and credit Paid-in Capital in Excess of Par-Common $400,000
• B)debit Retained Earnings $500,000,credit Paid-in Capital in Excess of Par-Common $500,000
• C)debit Retained Earnings $500,000 and credit Common Stock $500,000
• D)debit Retained Earnings $100,000 and credit Common Stock $100,000

Understand the voting rights and conditions under which a partner may or may not lose their limited liability status.

Grasp the significance of an operating agreement in managing the internal affairs of a limited liability company (LLC).

Know the legal considerations regarding the merger and dissolution processes of LLCs and partnerships.

Comprehend the principles governing profit, loss sharing, and the responsibilities of members within an LLC.

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Definitions:

Central Nervous

Often referred to as the central nervous system, it includes the brain and spinal cord, responsible for processing and sending out signals to the rest of the body.

Spinal Cord

The long, thin, tubular structure made up of nervous tissue that extends from the brain, encased within the spine, facilitating communication between the brain and the rest of the body.

Cerebellum

The cerebellum is a section of the brain located at the back and lower part of the skull which coordinates voluntary movements, maintains posture, and balances.

Coordinating Movements

The process through which the body's muscular, skeletal, and nervous systems work together to execute complex motor tasks.