Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Goforth Company has 1,000,000 shares of $.10 par common stock issued and outstanding. The board of directors declares an 8% stock dividend when the market

image text in transcribed
Goforth Company has 1,000,000 shares of $.10 par common stock issued and outstanding. The board of directors declares an 8% stock dividend when the market value of the stock is $100. Which of the following statement is true? a. The entry to record the declaration will include a credit to Common Stock for $8,000. b. Retained Earnings will decrease by $8,000,000. c. The entry to record the distribution of the shares will increase Additional Pajid in Capital in Excess of Par-Common Stock by $7,992,000 d. Retained Earnings will decrease by $800,000 and Total Paid in Capital will increase by the same amount

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting International Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

6th Edition

978-0470623275

More Books

Students also viewed these Accounting questions

Question

If the person is a professor, what courses do they teach?

Answered: 1 week ago

Question

x-3+1, x23 Let f(x) = -*+3, * Answered: 1 week ago

Answered: 1 week ago

Question

Describe some common hazards in the contemporary workplace

Answered: 1 week ago