A Company Originally Issued 13,000 Shares of $6 Par Value

question 239

Multiple Choice

A company originally issued 13,000 shares of $6 par value common stock at $12 per share.The board of directors declares a 12% stock dividend when the market price of the stock is $22 a share.Which of the following is included in the entry to record the declaration of a stock dividend?

• A) Stock Dividends is debited for $34,320.
• B) Stock Dividends is credited for $34,320.
• C) Stock Dividends is debited for $18,720.
• D) Paid-In Capital in Excess of Par-Common is credited for $18,720.

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