table 14 1 the board of directors declares a 10 stock dividend on 10 000 outstanding 4305929

table 14 1 the board of directors declares a 10 stock dividend on 10 000 outstanding 4305929

 

Table 14-1

The board of directors declares a 10% stock dividend on 10,000 outstanding common shares. The current market price of the shares is $12 per share.

50) Refer to Table 14-1. The journal entry will require a debit to retained earnings for:

A) $10,000

B) $12,000

C) $100,000

D) $120,000

51) Refer to Table 14-1. The entry to distribute the shares will require a:

A) debit to common shares for $12,000

B) debit to common stock dividend distributable for $120,000

C) debit to common stock dividend distributable for $12,000

D) debit to retained earnings for $12,000

52) Which of the following will reduce retained earnings?

A) a 3-for-1 stock split

B) declaration of a 15% stock dividend

C) distribution of a 15% stock dividend

D) payment of a $0.50 per share cash dividend

53) A stock dividend will:

A) reduce assets

B) reduce shareholders' equity

C) increase liabilities

D) have no effect on assets, shareholders' equity, or liabilities

54) Common stock dividend distributable is a:

A) contra liability account

B) shareholders' equity account

C) liability account

D) contra equity account

55) The common stock dividend distributable account will appear on the balance sheet:

A) in the shareholders' equity section before common shares

B) as a contra account to common shares

C) in the shareholders' equity section after common shares

D) This account is an income statement account and would not appear on the balance sheet.

 

"Get 15% discount on your first 3 orders with us"
Use the following coupon
"FIRST15"

Order Now

Related Posts