Williamson Company Declared and Distributed a 10% Stock Dividend When

question 40

Multiple Choice

Williamson Company declared and distributed a 10% stock dividend when it had 800,000 shares of $1 par value common stock outstanding.The market price per share of common stock was $60 per share when the dividend was declared.The journal entry to record the stock dividend would include a credit to:

• A)Retained Earnings $800,000.
• B)Paid-in Capital in Excess of Par-Common $4,720,000.
• C)Common Stock $800,000.
• D)Retained Earnings $80,000.

---

Definitions:

Continental Ice Sheet

A large mass of ice, including glaciers, that covers a large part of a continent.

Shoreline Glacier

A glacier that extends to the sea at its terminus, often calving icebergs into the water.

Glaciers

Large, slow-moving masses of ice that form from the accumulation and compaction of snow on mountains or near the poles.

Smooth Troughs

Gently sloping depressions or valleys often found on the ocean floor, formed by sedimentation or tectonic activities.