10. Luther Lumber Corporation has 1,000,000 shares of common stock authorized, of which 550,000 shares are issued and outstanding. The common stock has a $10 par value, a $12 book value, and a $13 market value when the corporation declared a 10% stock dividend. What journal entry is required on that date? 11. Gilbert Corporation's board of directors approved a 2-for-1 common stock split. The common stock had a $10 par value before the split. At what amount should retained earnings be reduced for the additional shares issued? a. Retained earnings is not affected by a stock split. b. Par value of the new shares. c. Market value of the new shares on the declaration date. d. Market value of the new shares on the distribution date. 12. Which of the following items is included on the statement of retained earnings? a. The effects of extraordinary items. b. The effects of discontinued operations. c. The effects of a change in accounting principle. d. Prior period adjustments. 13. Depreciation is a process of: a. Accumulating replacement funds. b. Cost replenishment. c. Cost accrual. d. Cost allocation. 14. On-time Trucking reported the following data for 20X4 : 15. Which of the following pairs of accounts are usually current liabilities? a. accounts payable, accounts receivable. b. prepaid expenses, wages payable. c. income taxes payable, unearned revenue. \&. notes receivable, bonds payable