On June 30,2018,Ginger,Inc On July 1,2018,the Company Declared and Distributed a 9% Stock

question 96

Multiple Choice

On June 30,2018,Ginger,Inc.showed the following data on the equity section of their balance sheet: $$\begin{array} { | l | r | } \hline \text { Stockholders' Equity } & \\\hline \text { Common Stock, } \$ 1 \text { par; 202,000 shares authorized, } & \\150,000 \text { shares issued and outstanding } & \$ 150,000 \\\hline \text { Paid-In Capital in Excess of Par-Common } & \$ 260,000 \\\hline \text { Retained Earnings } & \$ 946,000 \\\hline \text { Total Stockholder's Equity } & \$ 1,356,000 \\\hline\end{array}$$ On July 1,2018,the company declared and distributed a 9% stock dividend.The market value of the stock at that time was $20 per share.Following this transaction,what is the balance of Common Stock?

• A) $163,500
• B) $57,180
• C) $285,540
• D) $357,180

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Definitions:

Operating Fund

A fund used by an organization to manage its day-to-day operational expenses.

Encumbrance System

A legal system concerning real property wherein a claim or lien is placed on the property, affecting its use and transferability.

Estimated Commitments

Obligations or contracts that a company plans to undertake in the future, which are often projected or approximated.

Statement of Financial Position

Another term for the balance sheet, detailing a company's assets, liabilities, and equity at a specific point in time.