Rick Co had 30 million shares of $1 par common stock outstanding at January 1, 2009 In October, 2009, Rick Co 's Board of Directors declared and distributed a 1 common stock dividend when the market value of its common stock was $60 per share In recording this transaction, Rick would A Debit retain...

A Debit retained earnings for 18 million Journal Entry when the company declares the stock div ...

Rick Co. had 30 million shares of $1 par common stock outstanding at January 1, 2009. In

Question:

Rick Co. had 30 million shares of $1 par outstanding at January 1, 2009. In October, 2009, Rick Co.'s Board of Directors declared and distributed a 1% when the market value of its was $60 per share. In recording this transaction, Rick would:
A. Debit retained earnings for $18 million
B. Credit paid-in capital – excess of par for $18 million
C. Credit for $18 million
D. None of these is correct.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...