Arnold,Inc

question 124

Multiple Choice

Arnold,Inc.declares and distributes a 10% common stock dividend when it has 10,000 shares of $10 par value common stock outstanding.If the market value of the common stock is $20,the journal entry to record the stock dividend would include a:

• A)debit to Retained Earnings $20,000.
• B)debit to Retained Earnings $1000.
• C)credit to Paid-in Capital in Excess of Par-Common $20,000.
• D)credit to Paid-in Capital in Excess of Par-Common $1000.

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