On January 1, Swanson Corporation had 60,000 shares of $10 par value common stock outstanding On March 17, the company declared a 15 stock dividend to stockholders of record on March 20 Market value of the stock was $13 on March 17 The stock was distributed on March 30 The entry to record the trans...

b Debit to common stock dividends distributable for 90000 Dividends ...

On January 1, Swanson Corporation had 60,000 shares of $10 par value common stock outstanding. On March

Question:

On January 1, Swanson had 60,000 shares of $10 outstanding. On March 17, the company declared a 15% stock to stockholders of record on March 20. Market value of the stock was $13 on March 17. The stock was distributed on March 30. The entry to record the transaction of March 30 would include a
a. Credit to cash for $90,000
b. Debit to dividends distributable for $90,000
c. Credit to paid-in capital in Excess of for $27,000
d. Debit to retained earnings for $27,000

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...