4. 5. 6. The entry to record the declaration of a stock dividend of 100 shares...

 

Transcribed Image Text:

4. 5. 6. The entry to record the declaration of a stock dividend of 100 shares of $10 par stock with a market value of $15 is: Common Stock Dividend Distributable a. b. C. d. 1,500 b. C. 1,000 Paid-in Capital in Excess of Par Value - Stock 500 Retained Earnings 1,500 Cash 9,000 Paid-in Capital in Excess of Par Value - Stock Common Stock Dividend Distributable Retained Earnings 1,500 Paid-in Capital in Excess of Par Value - Stock Common Stock Dividend Distributable Common Stock Dividend Distributable Common Stock a. split. b. C. d. 1,500 The entry to record the distribution of a three-for-one stock split of 100 shares of $15 par stock with a market value of $18 is: a. Retained Earnings 1,500 Common Stock Dividend Distributable Common Stock Dividend Distributable Common Stock Common Stock Dividend Distributable Retained Earnings 1,800 Paid-in Capital in Excess of Par value - Stock Common Stock Dividend Distributable 500 1,500 1,500 1,000 1,000 500 1,800 300 300 d. No journal entry required, only a memorandum notation in the journal 1,500 Which of the following is not a characteristic of stock splits? The number of shares outstanding increases after a stock Proportional ownership is unchanged after a stock split. The market price per share decreases after a stock split. The par value of the stock remains the same. 4. 5. 6. The entry to record the declaration of a stock dividend of 100 shares of $10 par stock with a market value of $15 is: Common Stock Dividend Distributable a. b. C. d. 1,500 b. C. 1,000 Paid-in Capital in Excess of Par Value - Stock 500 Retained Earnings 1,500 Cash 9,000 Paid-in Capital in Excess of Par Value - Stock Common Stock Dividend Distributable Retained Earnings 1,500 Paid-in Capital in Excess of Par Value - Stock Common Stock Dividend Distributable Common Stock Dividend Distributable Common Stock a. split. b. C. d. 1,500 The entry to record the distribution of a three-for-one stock split of 100 shares of $15 par stock with a market value of $18 is: a. Retained Earnings 1,500 Common Stock Dividend Distributable Common Stock Dividend Distributable Common Stock Common Stock Dividend Distributable Retained Earnings 1,800 Paid-in Capital in Excess of Par value - Stock Common Stock Dividend Distributable 500 1,500 1,500 1,000 1,000 500 1,800 300 300 d. No journal entry required, only a memorandum notation in the journal 1,500 Which of the following is not a characteristic of stock splits? The number of shares outstanding increases after a stock Proportional ownership is unchanged after a stock split. The market price per share decreases after a stock split. The par value of the stock remains the same.

Answer rating: 100% (QA)

4 DR cash 100 x 15 1500 CR preferred stock 100 10 1000 CR paidin cap... View the full answer