A company with 100,000 authorized shares of $4 par common stock issued 50,000 sh

Question

A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at
$9. Subsequently, the company declared a 2% stock dividend on a date when the market price
was $10 a share. The effect of the declaration and issuance of the stock dividend is to
a. decrease retained earnings, increase common stock, and decrease paid-in capital
b. increase retained earnings, decrease common stock, and increase paid-in capital
c. decrease retained earnings, increase common stock, and increase paid-in capital
d. increase retained earnings, decrease common stock, and decrease paid-in capital

Explanation / Answer

c. decrease retained earnings, increase common stock, and increase paid-in capital

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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