Global Corporation had 53,000 shares of $20 par value common stock outstanding o

Question

Global Corporation had 53,000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 20% stock dividend when the market value of each share was $30. The entry to record the dividend declaration Is Multiple Choice No entry is made untl the stock is issued. Debit Retained Earnings $212.000; credit Common Stock Dividend Distributable $212,000 Debilt Retained Earmings $318,000: credit Common Stock Dividend Distributable $212.000; credit Paid-In Capital in Excess of Par Velue, Common Stock $106,000 Debit Retained Earnings $318.000 credit Common Stock Dvidend Distributable $318.000 Prex 21 of 25 Next > 9

Explanation / Answer

Entry for dividend declaration is stock dividend = 53000shares *20% 10600 Account titles & Explanations Debit Credit Retained earnings (10600*30) 318000 Stock dividend distributable (10600*20) 212000 paid in capital in excess of par (10600*10) 106000 option ) debit retained earnings $318,000 ,credit common stock dividend distributable $212,000 ,credit paid in capital in excess of par value ,common stock $106,000

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