lally issue stock dividends to: Alter the ownership percentages of A) B) Immedia
ID: 2585986 • Letter: L
Question
lally issue stock dividends to: Alter the ownership percentages of A) B) Immediately increase the market price of a share of stock. C) Immediately decrease the market price of a share of stock stockholders. D) E) Decrease the amount of Increase the corporation's assets. 19. On the date of declaration, the following account is always debited by a company declaring dividends: A) Cash. B) Dividends payable C) Common stock. D) APIC. E) Retained eamings. A corporation sold 14,000 shares of its $10 par value common stock at a cash price of $13 per share. The entry to record this transaction would include: A) A debit to Contributed Capital in Excess of Par Value (APIC), Common Stock 20. B) C) D) E) for $42,000. A debit to Cash for $140,000. A credit to Common Stock for $182,000. A credit to Common Stock for $140,000. A credit to Contributed Capital in Excess of Par Value (APIC), Common Stock for $182,000. A company issued 60 shares of $100 par value stock for $7,000 cash. The total amount of contributed capital is: A) S 100. B) S 600. C) $1,000. D) $6,000. E) $7,000. 21. company has 15,000 shares authorized, 10,000 issued, and 9,500 shares outstanding. The total amount of the cash dividend is: A) S 375 B) S 4,125 C) S 7,125 D) 7,500. E) S11,250 22, A company's board ofdirectors votes to declare a cash dividend of 75¢ per share. TheExplanation / Answer
19) option E) Retained earnings Dividends are distribution of excess income accumulated over time in the name of retained earnings 20) entry cash (14000*13) DR 182000 common stock (14000*10) CR 140000 APIC 42000 hence correct option is option d a credit to common stock for $140,000 21) total amount of contributed capital is 7000 hence option E is the correct answer 22) cash dividend = (9500*.75) 7125 hence correct answer is option c
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