kimmel, Accounting, 6e : 07:23 PM/ Remaining: 87 min. Multiple Choice Question 1

Question

kimmel, Accounting, 6e : 07:23 PM/ Remaining: 87 min. Multiple Choice Question 121 On January 1, Sheridan Company had 650000 shares of $10 par value common stock outstanding. On March 31 the company declared a 10% stock dividend. Market value of the stock was $15/share. As a result of this event, Sheridan Paid-in Capital in Excess of Par Value account increased $325000. O Sheridan total stockholders' equity was unaffected. 0 Sheridan Stock Dividends account increased $975000. O All of these answer choices are correct. Click if you would like to Show Work for Open Show this question: Work Question Attempts: 0 of 1 used sUBMIT ANSWER

Explanation / Answer

Answer is 4

All of the choices are correct

-650000*10% =65000*5 = 325000 additonal paid in capital

-65000*15 = 975000 would be debited from retained earnings and credit to common stockholder equity

-stock dividend payable = 975000

Related Questions

Navigate

• Browse (All)
• Browse K
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.