1. On January 1, Garrison Corporation had 1,090,000 shares of $9 par value commo
ID: 2502049 • Letter: 1
Question
1. On January 1, Garrison Corporation had 1,090,000 shares of $9 par value common stock outstanding. On March 31, the company declared a 9% stock dividend. Market value of the stock was $11/share. As a result of this event,
a. Garrison's Paid-in Capital in Excess of Par Value account increased $196,200.
b. Garrison's total stockholders' equity was unaffected.
c. Garrison's Retained Earnings account decreased $1,079,100
d. dierect labor
2. The lessee has substantially all of the benefits and risks of ownership in a(n)
a. operating lease
b. operating lease and a capital lease
c. apartment lease
d. capital lease
Explanation / Answer
Answer 1. b. Garrison's total stockholders' equity was unaffected
Answer 2. d. Capital Lease
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