44 stock dividends are declared by the a chief financial officer of the company b bo 4307007

44 stock dividends are declared by the a chief financial officer of the company b bo 4307007

44) Stock dividends are declared by the:

A) chief financial officer of the company.

B) board of directors of the company.

C) chief executive officer of the company.

D) stockholders of the company.

45) A company originally issued 10,000 shares of $5 par value common stock at $7 per share. The board of directors declares a 10% stock dividend when the market price of the stock is $8 a share. Which of the following is included in the entry to record the declaration of a stock dividend?

A) Retained Earnings is debited for $8,000.

B) Retained Earnings is credited for $8,000.

C) Retained Earnings is debited for $7,000.

D) Paid-in Capital in Excess of Par—Common is credited for $7,000.

46) A company originally issued 10,000 shares of $5 par value common stock at $9 per share. The board of directors declares an 8% stock dividend when the market price of the stock is $10 a share. Which of the following is included in the entry to record the declaration of a stock dividend?

A) Retained Earnings is debited for $4,000.

B) Common Stock—$5 Par Value is credited for $7,200.

C) Common Stock is credited for $8,000.

D) Retained Earnings is debited for $8,000.

47) A corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $12.00 per share.

Common stock, $5 par, 100,000 shares authorized, 50,000 shares issued

$250,000

Paid in capital in excess of par—common

150,000

Retained earnings

500,000

Total stockholders' equity

$900,000

Which of the following would be included in the entry to record the distribution of a 15% stock dividend?

A) Common Stock—$5 Par Value would be credited for $37,500.

B) Retained Earnings would be debited for $35,000.

C) Paid-In Capital in Excess of Par—Common is debited for $35,000.

D) Retained Earnings would be credited for $60,000.

48) Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $11.50 per share.

Common stock, $5 par, 100,000 shares authorized, 40,000 shares issued

$200,000

Paid in capital in excess of par—common

120,000

Retained earnings

290,000

Total stockholders' equity

$610,000

What would be the total stockholders' equity after a 10% common stock dividend?

A) $656,000

B) $320,000

C) $610,000

D) $366,000

49) Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $11.50 per share.

Common stock, $8 par, 100,000 shares authorized, 40,000 shares issued

$320,000

Paid in capital in excess of par—common

150,000

Retained earnings

330,000

Total stockholders' equity

$800,000

What would be the balance in the Common Stock account after the issuance of a 10% stock dividend?

A) $300,000

B) $288,000

C) $352,000

D) $320,000

50) Landess Corporation currently has 120,000 shares outstanding of $1 par value common stock. The stock was originally issued for $12 per share. On March 15, the board of directors declares a 10% stock dividend when the stock is selling for $16 per share. Which of the following is the correct journal entry to record this transaction?

A) Debit Common Stock Dividend Distributable $12,000, debit Paid-In Capital in Excess of Par—Common for $180,000 and credit Retained Earnings $192,000.

B) Debit Retained Earnings $192,000 and credit Common Stock Dividend Distributable $192,000.

C) Debit Retained Earnings $192,000, credit Common Stock Dividend Distributable $12,000 and credit Paid-In Capital in Excess of Par—Common $180,000.

D) Debit Paid-In Capital in Excess of Par—Common $192,000 and credit Retained Earnings $192,000.

51) Happy Holiday, Inc. has 100,000 shares of common stock issued and outstanding, with a par value of $0.01 per share. They declared a 15% common stock dividend; market value is $12 per share. Which of the following is the correct journal entry to record the transaction?

A) Debit Retained Earnings $180,000 and credit Paid-In Capital in Excess of Par—Common $180,000.

B) Debit Retained Earnings $180,000, credit Common Stock Dividend Distributable $150 and credit Paid-In Capital in Excess of Par—Common $179,850.

C) Debit Retained Earnings $180,000 and credit Cash $180,000.

D) Debit Common Stock Dividend Distributable $150, debit Paid-In Capital in Excess of Par—Common $179,850 and credit Retained Earnings $180,000.

52) On December 1, 2015, Arthur Company had 30,000 shares of $5 par value common stock issued and outstanding. The next day they declared a 50% stock dividend. The market value of the stock on that date was $9 per share. Which of the following is the correct journal entry to record this transaction?

A) Debit Retained Earnings $270,000 and credit Cash $270,000.

B) Debit Retained Earnings $270,000, credit Common Stock $150,000 and credit Paid-In Capital in Excess of Par $120,000.

C) Debit Common Stock $75,000 and credit Cash $75000.

D) Debit Retained Earnings $75,000 and credit Common Stock Dividend Distributable $75,000.

53) On June 30, 2015, Roger Company showed the following data on the equity section of their balance sheet:

Stockholders' equity

Common stock, $1 par

190,000 shares authorized,

140,000 shares issued and outstanding

$140,000

Paid-in capital in excess of par—Common

260,000

Retained earnings

940,000

Total stockholder's equity

$1,340,000

On July 1, 2015, Roger declared and distributed a 5% stock dividend. The market value of the stock at that time was $13 per share. Following this transaction, what would be the new balance in the Common stock account?

A) $147,000

B) $26,000

C) $66,000

D

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