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Austin Motor Works declared a 5% stock dividend in 2016 when the stock was selling for $18 per share. There were 2,000,000 shares outstanding at
Austin Motor Works declared a 5% stock dividend in 2016 when the stock was selling for $18 per share. There were 2,000,000 shares outstanding at the time of the dividend declaration. The controller recorded the distribution at par value ($1 per share) resulting in a debit to retained earnings and a credit to common stock for $100,000. Upon review in early 2017 when the 2016 books were still open, the CFO made which of the following correcting entries? (Abbreviations used: APIC = Additional Paid-In Capital) A. He made no entry because the controller was correct
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