Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000 shares. At the time of the stock dividend, the market value per share was $12. The entry to record this dividend is:

A. Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $36,000.
B. Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $30,000; credit Paid-In Capital in Excess of Par Value, Common Stock $6,000.
C. Debit Common Stock Dividend Distributable $36,000; credit Retained Earnings $36,000.
D. Debit Retained Earnings $30,000; credit Common Stock Dividend Distributable $30,000.
E. No entry is needed.

Question

11-12-2019
Business

contestada

Eastline Corporation had 10,000 shares of $10 par value common stock outstanding when the board of directors declared a stock dividend of 3,000 shares. At the time of the stock dividend, the market value per share was $12. The entry to record this dividend is:

A. Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $36,000.
B. Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $30,000; credit Paid-In Capital in Excess of Par Value, Common Stock $6,000.
C. Debit Common Stock Dividend Distributable $36,000; credit Retained Earnings $36,000.
D. Debit Retained Earnings $30,000; credit Common Stock Dividend Distributable $30,000.
E. No entry is needed.

Respuesta :

Otras preguntas

Jamal has 18 oatmeal cookies. He splits them evenly among b bags. Write an expression that shows how many cookies are in each bag. Type an asterisk ( * ) if you

how did nationalism affect europe after the congress of vienna and 1815

In the late 1800s, the population of American cities grew at an increasingly rapid rate as the trend of a "rural to urban shift" became apparent. Describe any T

Jake, Lionel, and Wayne work as house painters for Paint Well Company. Jake can paint 1 room in t hours. Lionel can paint a room 2 hours faster than Jake can. W

How do you do these 2 problems?

Computer with a domain name is called a

In a square, one pair of opposite sides was made 50% longer and the other pair of opposite sides was made 50% shorter What percent of the square’s area is the a

Which of the following statements best describes the location of −(−2) on a number line? It is 2 units to the right of 0. It is 2 units to the left of 0. It

A sunset appears red because A. scattering is prevented by small particles. B. it travels through less atmosphere. C. most of the blue and green has

Compare the daily life of Athenian and Spartan girls.

sebastiansierraocm sebastiansierraocm · Answer 1 · 2019-12-15T21:50:08+01:00

Answer:

B) Debit Retained Earnings $36,000; credit Common Stock Dividend Distributable $30,000; credit Paid-In Capital in Excess of Par Value, Common Stock $6,000.

Explanation:

The journal entry is as follows:

Account Debit Credit

Retained Earnings $36,000

Common Stock Dividend Distributable $30,000

Paid in Capital in Excess of Par Value $6,000