Godzilla, Inc. has 10,000 shares of 7%, $100 par value, cumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2020 If the board of directors declares a $75,000 dividend, the

a. preferred shareholders will receive 1/10th of what the common shareholders will receive.

b. preferred shareholders will receive the entire $75,000.

c. $75,000 will be held as restricted retained earnings and paid out at some future date.

d. preferred shareholders will receive $70,000 and the common shareholders will receive $5,000.

Murphy Manufacturing declared a 10% stock dividend when it had 700,000 shares of $3 par value common stock outstanding. The market price per common share was $12 per share when the dividend was declared. The entry to record this dividend declaration includes a credit to

a. Stock Dividends for $210,000.

b. Paid-in Capital in Excess of Par for $840,000.

c. Common Stock for $210,000.

d. Common Stock Dividends Distributable for $210,000.