Case 12.1 (3 Part Question)

Gordon Corporation reported the following equity section on its current balance sheet. The common stock is currently selling for $11.50 per share. Common stock, $5 par, 100,000 shares authorized, 40,000 shares issued $200,000 Paid in capital in excess of par common 120,000 Retained earnings 290,000 Total stockholders' equity $610,000 Refer to Case 12.1. Which of the following would be included in the entry to record a 10% stock dividend?

	Common stock would be credited for $46,000.
	Retained earnings would be debited for $46,000.
	Common stock would be debited for $20,000.
	Paid-in capital in excess of par common is credited for $46,000.

Refer to Case 12.1. Which of the following would be included in the entry to record a 2-for-1 stock split?

	Retained earnings would be debited for $46,000.
	Paid-in capital in excess of par common is credited for $$46,000.
	Common stock would be credited for $46,000.
	Common stock would not change.

Gordon Corporation has now reported the following equity section on its current balance sheet. Common stock, $5 par, 140,000 shares authorized, 50,000 shares issued $250,000 Paid in capital in excess of par common 200,000 Retained earnings 207,000 Total stockholders' equity $657,000 Refer to Case 12.1. The corporation has acquired treasury stock for $9.50 per share. No treasury stock has been reissued by the corporation. Which of the following would be included in the entry to record the reissue of 8,000 shares of the treasury stock for $8 per share?

	Paid-in capital from treasury stock transactions would be credited for $64,000.
	Common stock would be credited for $40,000
	Retained earnings would be debited for $12,000.
	Treasury stock would be debited for $76,000.