Fortune, Inc

question 12

Multiple Choice

Fortune, Inc. declares 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 $20,000.
• C) credit to Paid-in Capital in Excess of Par Value $30,000.
• D) credit to Paid-in Capital in Excess of Par Value $20,000

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Definitions:

Carbon Film

A type of resistor made by depositing a thin layer of carbon on an insulating substrate, known for stability and low noise.

Ceramic Rod

A type of non-metallic rod made from ceramic materials, often used for applications requiring high temperature resistance or electrical insulation.

Carbon

A chemical element, with symbol C, that is the basis of all known life on earth, capable of forming multiple stable covalent bonds.

Tolerance

The permissible limit of variation in a physical dimension or electrical component's performance, indicating the range within which the actual value is accepted to differ from the specified value.