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Homework answers / question archive / A corporation had 30,000 shares of $6 par value common stock outstanding
A corporation had 30,000 shares of $6 par value common stock outstanding. The board of directors declared and issued a 20% stock dividend. The market value of the stock was $34 per share. What is the journal entry to record this stock dividend? Multiple Choice Debit Retained Earnings and credit Common Stock for $204,000. Debit Retained Earnings for $204,000, credit Common Stock for $36,000, and credit Additional Paid-in Capital for $168,000. Debit Retained Earnings for $240,000, credit Common Stock for $36,000, and credit Additional Paid-in Capital for $204,000. Debit Retained Earnings and credit Common Stock for $36,000.
ParticularsDebitCreditRetained Earnings$ 2,04,000.00(30000 x 20% x $ 34)To Common Stock$ 36,000.00(30000 x 20% x $ 6)To Additional Paid in Capital$ 1,68,000.00(30000 x 20% x $ 28)
