Dolanski Company Declares and Distributes a 30% Common Stock Dividend

question 89

Multiple Choice

Dolanski Company declares and distributes a 30% common stock dividend when it has 60,000 shares of $10 par common stock outstanding.The market price per share is $75 at the date of declaration.Which journal entry is prepared?

• A)debit Retained Earnings $1,350,000,credit Common Stock $180,000 and credit Paid-in Capital in Excess of Par-Common $1,170,000
• B)debit Retained Earnings $1,350,000,credit Paid-in Capital in Excess of Par-Common $500,000
• C)debit Retained Earnings $1,350,000 and credit Common Stock $1,350,000
• D)debit Retained Earnings $180,000 and credit Common Stock $180,000

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Definitions:

Incorporators

The people who actually sign the articles of incorporation to start a corporation.

Permission to Incorporate

Official authorization or approval granted to establish a corporation or legal entity.

Corporate Capitalist State

A socioeconomic system where corporate entities and economic elites have significant influence over state policies and governance, often leading to a fusion of corporate and state power.

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The belief in the reliability, truth, or strength of someone or something without requiring proof.