Question
On September 1, the board of directors of Colorado Outfitters, Inc., declares a 10% stock dividend on its 20,000, $1 par, common shares. The market
On September 1, the board of directors of Colorado Outfitters, Inc., declares a 10% stock dividend on its 20,000, $1 par, common shares. The market price of the common stock is $30 on this date. The effect of the issuance of stock dividend is:
A. decrease retained earnings by 30,000
B. decrease retained earnings by 60,000
C. increase common stock by 60,000
PLEASE EXPLAIN IN DETAIL, THANKS IN ADVANCE!
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Dk Essential Managers Understanding Accounts
Authors: Stephen Brookson, Adele Hayward
1st Edition
0789471493, 978-0789471499
