Whipple Company has 1,000,000 shares of common stock authorized with a par value of $3 per share,

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Whipple Company has 1,000,000 shares of common stock authorized with a of $3 per share, of which 600,000 shares are outstanding. When the market value was $8 per share, Whipple issued a stock whereby for each six shares held one share was issued as a stock The of the stock was not changed. What entry should Whipple make to record this transaction? Chose the correct entry from the following

$ 3,00,000 a. Retained earnings $ 3,00,000 Common stock b. Additional paid-in capital 3,00,000 Common stock 3,00,000 c.R

d. Additional paid-in capital 8,00,000 Common stock* 3,00,000 Retained earnings 5,00,000

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...

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Related Book For book-img-for-question

Intermediate accounting

ISBN: 978-0077647094

7th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

Question Posted: Sep 19, 2017 09:40 AM

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Whipple Company has 1,000,000 shares of common stock authorized with a par value of $3 per share,

Question:

$ 3,00,000 a. Retained earnings $ 3,00,000 Common stock b. Additional paid-in capital 3,00,000 Common stock 3,00,000 c.Retained earnings 8,00,000 Common stock 3,00,000 Additional paid-in capital 5,00,000 d. Additional paid-in capital 8,00,000 Common stock* 3,00,000 Retained earnings 5,00,000

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The number of shares issued is less than 2025 Therefo...View the full answer

Intermediate accounting

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