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romanna [79]
4 years ago
8

A company originally issued​ 13,000 shares of​ $6 par value common stock at​ $12 per share. The board of directors declares a​12

% stock dividend when the market price of the stock is​ $22 a share. Which of the following is included in the entry to record the declaration of a stock​ dividend?
A. Stock Dividends is credited for​ $34,320.
B. Stock Dividends is debited for​ $34,320.
C. Paid-In Capital in Excess of Parlong dash—Common is credited for​ $18,720.
D. Stock Dividends is debited for​ $18,720
Business
1 answer:
Rashid [163]4 years ago
8 0

Answer:

no option is correct

Explanation:

stocks to be distributed = 13,000 x 12% = 1,560

1,560 stocks x $22 = $34,320

  • 1,560 x $6 = $9,360
  • 1,560 x ($22 - $6) = $24,960

the journal entry to record the declaration of a small stock dividend (less than 20% of outstanding stocks) should be:

Dr Retained earnings (1,560 x $22) 34,320

    Cr Common stock dividend distributable (1,560 x $6) 9,360

    Cr Additional paid in capital 24,960

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Explanation:

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6 0
3 years ago
Read 2 more answers
In 2012 the change in business inventories is -$70 billion and GDP is $200 billion. Final sales in 2012 Group of answer choices
blsea [12.9K]

Answer:

are $270 billion

Explanation:

Change in business inventories in 2012 = -$70 billion

GDP of 2012 = $200 billion

Final sales in 2012 = GDP - Change in inventory

Final sales in 2012 = $200 billion - (- 70 billion )

Final sales in 2012 = $200 Billion + 70 billion

Final sales in 2012 = $270 billion

Hence proved that the correct answer is $270 billion

7 0
3 years ago
Ed has a summer beach cottage that he has owned for many years. the cottage is valued at $ 75 comma 000. this​ year, ed spends ​
mezya [45]

is this all of the equation?

3 0
3 years ago
Sunland Company has the following account balances: Sales Revenue $226,700, Sales Discounts $4,410, Cost of Goods Sold $129,600,
Kaylis [27]

Answer and Explanation:

The Journal entry is shown below:-

1. Sales revenue Dr,  $226,700

        To Income revenue $226,700

(Being close accounts with credit income balances is recorded)

2. Income revenue Dr, $134,010

         To Sales discount $4,410

         To Cost of goods sold $129,600

(Being close accounts with debit expenses account is recorded)

8 0
3 years ago
Immediately upon receipt of cash, a responsible employee should
Ulleksa [173]

Answer:

B. Prepare a listing of remittances

Explanation:

The employee receives a cash receipt only when some expense is incurred on behalf of the company. This clearly validates that as soon as the receipt is received the listing of remittances shall be prepared.

This listing basically signifies that all the expenses shall be paid off, as incurred on behalf of company, or any kind of bill is pending for payment of goods acquisition, then it shall be paid off, and entered in the list where all remittances has to be made.

6 0
3 years ago
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