The date a board of directors votes to pay a dividend is called the: Date of sto

Question

The date a board of directors votes to pay a dividend is called the: Date of stockholders' meeting. Date of declaration. Date of record. Date of payment. Liquidating date. Treasury stock is classified as: An asset account. A contra asset account. A revenue account. A contra equity account. A liability account. New Corp. issues 2,000 shares of $ 10 par value common stock at $ 14 per share. When the transaction is recorded, credits are made to Common Stock $20,000 and Paid-in Capital in Excess of Stated Value $8,000. Common Stock $28,000. Common Stock $20,000 and Paid-in Capital in Excess of Par Value $8,000. Common Stock $20,000 and Retained Earnings $8,000.

Explanation / Answer

8. The date will be called as

B) Date of Declaration

Date of declaration is the date on which the dividend is declared.

9. Treasury Stock is

D) Contra Equity Account

The treasury stock is classified under Contra Equity Account.

10. The Journal Entry would be

Cash Dr 28000

Common Stock 20000

Paid in Capital in excess of par 8000

The correct option is

C) Common Stock $ 20000 and paid in capital in excess of par $ 8000

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