Question
On January 1, 2017, a company had 100,000 shares of $1 par value common stock outstanding and 40,000 shares of treasury stock. On April 1,
On January 1, 2017, a company had 100,000 shares of $1 par value common stock outstanding and 40,000 shares of treasury stock. On April 1, the company repurchased an additional 10,000 shares of outstanding common stock. On July 1, the company declared a common stock dividend of 17,000 shares. On the declaration date, the company's common stock was trading at $20 per share. Later in the year, the company satisfied the stock dividend declaration by distributing newly issued common shares (note also that the treasury shares are not entitled to the stock dividend).
The journal entry to record the declaration of the dividend included which of the following:
A.
No journal entry is required.
B.
Credit to Additional Paid-in Capital in Excess of ParCommon for $323,000.
C.
Debit to DividendsCommon for $17,000.
D.
Credit to Cash for $17,000.
E.
Credit to Dividends PayableCommon for $17,000.
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