Stock dividend when the market value of each share

Assignment Help Financial Accounting

Reference no: EM13744743

A corporation had 41000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 25% stock dividend when the market value of each share was $25. The entry to record this dividend is:

1) Debit retained earning $256,250; credit common stock dividend distributable $256,250

2) Debit retained earning $205,000; credit common stock dividend distributable $205,000

3) Debit retained earning $256,250; credit common stock dividend distributable $205,000; credit Paid-in capital in excess of par value common stock $51,250.

4) Debit retained earning $256,250; credit cash $256,250

5) No entry is made until the stock is issued

Reference no: EM13744743

Questions Cloud

Debate about a national health care plan : Burt is the custodian at Quaker Inn, an S corporation that has paid him bonuses over the years in the form of shares in the corporation. Burt now holds 276 shares in Quaker Inn.

Focus on continuous improvement processes : Many organizations focus on continuous improvement processes to aid efficiency improvement, reduce waste, and/or maximize profits. In your posting, discuss three of the continuous improvement foci areas you have experienced in your job or organiz..

What challenges do you anticipate in organization : How do you think business analytics can help your current organization with their decision-making processes. What challenges do you anticipate in getting your organization to implement and utilize business analytics

What project areas need to be assessed : What project areas need to be assessed in a readiness process? What is included (and not included) during the stabilization timeframe - Why is knowledge transfer important to the long-term stability of the ERP system? What are the 5 areas addressed..

Stock dividend when the market value of each share : A corporation had 41000 shares of $20 par value common stock outstanding on July 1. Later that day the board of directors declared a 25% stock dividend when the market value of each share was $25.

Elements of strategic management : Discuss the elements of strategic management and explain why it is crucial to an organization's survival. Using a company as an example, explain the difference between a strategy and a business model. Please discuss in 200-250 words.

Report on gene and related protein : Report on Gene and Related Proteinand Determine chromosome location of your gene. Paste a picture of the chromosome from MAP VIEWER into your report and describe

Describe the challenges the company : Provide your rationale as to whether or not the use of data analytics has helped the company accomplish its goals. Describe the challenges the company may have faced by choosing to utilize business analytics that the other company did not face.

Which accounting assumption governs this situation : Explain underlying accounting concepts, assumptions, and principles of accounting) David Newberry is chairman of the board of Healthy Food Brands, Inc. Suppose Mr. Newberry has just founded Healthy Food Brands, and assume that he treats his home and ..

User Account

All Pages