On January 1, Ripken Corporation had 80,000 shares of $10 par value common stock outstanding. On May 7, the company declared a 10% stock dividend to stockholders of record on May 21. The market value of the stock was $13 on May 7. The entry to record the transaction of May 7 would include a 

1) debit to Stock Dividends for $104,000. 

2) credit to Cash for $104,000. 

3) credit to Common Stock Dividends Distributable for $104,000. 

4) credit to Common Stock Dividends Distributable for $24,000.

Answer rating: 100% (QA)

Stock Dividend will be based on the market value of the S... View the full answer